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    Macroeconomics Study Set 48
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    Exam 12: Aggregate Demand and Aggregate Supply
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    Other Things Equal, in the Income-Expenditure Model, a Decrease in the Price
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Other Things Equal, in the Income-Expenditure Model, a Decrease in the Price

Question 252

Question 252

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Other things equal, in the income-expenditure model, a decrease in the price level will cause the planned aggregate expenditure curve to shift downward, resulting in a lower level of real GDP.

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