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Deriving Aggregate Demand from the AE Model
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Deriving Aggregate Demand from the AE Model
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17. Aggregate Demand and Aggregate Supply Analysis / Deriving Aggregate Demand from the Aggregate Expenditure Model / Problem 2
Problem 2
If price levels decrease, what is the expected impact on aggregate expenditures?
A
Aggregate expenditures remain unchanged
B
Aggregate expenditures increase
C
Aggregate expenditures decrease
D
Aggregate expenditures fluctuate unpredictably
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