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In Order to Analyze the Factors That Determine the Quantity

Question 10

Multiple Choice

In order to analyze the factors that determine the quantity of real GDP demanded, in the aggregate expenditure model we assume that


A) the unemployment level is fixed.
B) the inflation rate is assumed to equal the natural unemployment rate.
C) the natural rate of unemployment is fixed.
D) the price level is fixed.
E) real GDP does not change.

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