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  3. Study Set
    Macroeconomics Study Set 68
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    Exam 12: Aggregate Demand and Aggregate Supply
  5. Question
    Why Can't the Substitution and Income Effects Be Used to Explain
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Why Can't the Substitution and Income Effects Be Used to Explain

Question 295

Question 295

Essay

Why can't the substitution and income effects be used to explain the downward slope of the
aggregate demand curve?

Correct Answer:

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The demand for a single product slopes d...

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