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Exhibit 9-5 Keynesian Aggregate-Expenditures Model Where the MPC Is 0

Question 20

Multiple Choice

Exhibit 9-5 Keynesian aggregate-expenditures model where the MPC is 0.75 The economy shown in Exhibit 9-5 is:

A) in a recessionary gap.
B) in an inflationary gap.
C) fully employed.
D) substantially underemployed.

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