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

Question 85

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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