Multiple Choice
A key result of the equilibrium aggregate expenditure model is that it:
A) can explain why the economy should always be at natural rate GDP.
B) illustrates how the government always moves us towards equilibrium GDP.
C) can illustrate how an economy can be at an equilibrium that is below natural rate GDP.
D) shows how classical notion that the economy will always tend towards natural rate GDP is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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