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In a Simple Macro Model with Demand-Determined Output,the Equilibrium Level

Question 135

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In a simple macro model with demand-determined output,the equilibrium level of national income is at an income


A) to the left of the point where the AE curve intersects the 45-degree line.
B) where the AE curve intersects the 45-degree line.
C) to the right of the point where the AE curve intersects the 45-degree line.
D) where saving equals consumption.
E) where saving equals income.

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