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    Economics for Today Study Set 6
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    Exam 19: The Keynesian Model in Action
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    If Actual Real GDP Is Greater Than the Equilibrium Level
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If Actual Real GDP Is Greater Than the Equilibrium Level

Question 18

Question 18

Essay

If actual real GDP is greater than the equilibrium level of real GDP (i.e., the aggregate expenditures function is below the 45-degree line), what happens to restore equilibrium to the economy?

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At the current level of real GDP, aggreg...

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