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Using the Aggregate Expenditure Model, the Equilibrium Level of the Aggregate

Question 134

Multiple Choice

Using the aggregate expenditure model, the equilibrium level of the aggregate expenditure can occur when the economy is producing


A) only at full employment.
B) only at above full employment.
C) only at below full employment.
D) at full employment, above full employment, or below full employment.
E) at either below full employment or at full employment but never at above full employment.

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