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Using the Output at Which the Aggregate Expenditure Curve Intersects

Question 85

Multiple Choice

Using the output at which the aggregate expenditure curve intersects the 45-degree line,we can identify


A) Equilibrium (macro) at the intersection point.
B) Dissaving to the right of the intersection point.
C) Full employment to the left of the intersection point if there is a recessionary gap.
D) A consumption shortfall at the intersection point.

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