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    Macroeconomics Study Set 68
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    Exam 11: The Aggregate Expenditures Model
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    Refer to the Diagram for a Private Closed Economy
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Refer to the Diagram for a Private Closed Economy

Question 81

Question 81

Multiple Choice

  Refer to the diagram for a private closed economy. The $400 level of GDP is A)  that output at which saving is zero. B)  too high because consumption exceeds investment. C)  unsustainable because aggregate expenditures exceed GDP. D)  unsustainable because aggregate expenditures are less than GDP. Refer to the diagram for a private closed economy. The $400 level of GDP is


A) that output at which saving is zero.
B) too high because consumption exceeds investment.
C) unsustainable because aggregate expenditures exceed GDP.
D) unsustainable because aggregate expenditures are less than GDP.

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