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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 1
Problem 1
What happens to equilibrium GDP if the price level decreases from 110 to 100?
A
Equilibrium GDP fluctuates unpredictably
B
Equilibrium GDP remains constant
C
Equilibrium GDP increases
D
Equilibrium GDP decreases
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