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AE Model: Private Closed Economy
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Problem 7
Problem 8
Problem 9
Problem 10
AE Model: Private Closed Economy
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16. Deriving the Aggregate Expenditures Model / AE Model: Private Closed Economy / Problem 8
Problem 8
What is the primary implication of removing government purchases and net exports from the aggregate expenditures model?
A
Aggregate expenditures decrease significantly.
B
Aggregate expenditures become solely dependent on consumption and investment.
C
Aggregate expenditures become solely dependent on government spending.
D
Aggregate expenditures increase significantly.
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