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In the Income-Expenditure Model, for Each Price Level There Is

Question 84

Multiple Choice

In the income-expenditure model, for each price level there is a different equilibrium output level. If we plot one such equilibrium output and price combination, we obtain


A) the aggregate demand curve.
B) a point on the aggregate demand curve.
C) the slope of the entire aggregate demand curve.
D) the slope of the planned expenditures line.

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