A change in the price level alters the location of the aggregate expenditures schedule through the real-balances,

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A change in the price level alters the location of the aggregate expenditures schedule through the real-balances, interest-

rate, and foreign purchases effects. The aggregate demand curve is derived from the aggregate expenditures model by allowing the price level to change and observing the effect on the aggregate expenditures schedule and thus on equilibrium GDP.

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Economics Principles Problems And Policies

ISBN: 9780073511443

19th Edition

Authors: Campbell Mcconnell ,Stanley Brue ,Sean Flynn

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Question Posted: Oct 01, 2024 04:02 AM

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A change in the price level alters the location of the aggregate expenditures schedule through the real-balances,

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Economics Principles Problems And Policies

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