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Aggregate Expenditures Model and Macroeconomic Equilibrium
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Aggregate Expenditures Model and Macroeconomic Equilibrium
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15. Deriving the Aggregate Expenditures Model / Aggregate Expenditures Model and Macroeconomic Equilibrium / Problem 6
Problem 6
How do sticky prices contribute to the stability of the aggregate expenditures model?
A
By reducing the impact of the multiplier effect.
B
By causing fluctuations in government purchases.
C
By preventing price changes from affecting spending and production.
D
By increasing the volatility of net exports.
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