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16. Deriving the Aggregate Expenditures Model
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Problem 13
16. Deriving the Aggregate Expenditures Model
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16. Deriving the Aggregate Expenditures Model / AE Model: Private Open Economy / Problem 8
Problem 8
In a graph of a private open economy, what does the intersection of the aggregate expenditures line and the 45-degree line represent?
A
Trade surplus
B
Recessionary gap
C
Inflationary gap
D
Macroeconomic equilibrium
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