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Aggregate Expenditures Model and Macroeconomic Equilibrium
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Aggregate Expenditures Model and Macroeconomic Equilibrium
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16. Deriving the Aggregate Expenditures Model / Aggregate Expenditures Model and Macroeconomic Equilibrium / Problem 5
Problem 5
Why are investment, government purchases, and net exports considered constants in the aggregate expenditures model?
A
They fluctuate with changes in consumption.
B
They are influenced by sticky prices.
C
They do not change with GDP.
D
They are determined by the marginal propensity to consume.
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