9. The goods market is in equilibrium when the aggregate quantity of goods supplied equals the aggregate

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9. The goods market is in equilibrium when the aggregate quantity of goods supplied equals the aggregate quantity of goods demanded, which (in a closed economy) is the sum of desired con- sumption, desired investment, and government purchases of goods and services. Equivalently, the goods market is in equilibrium when desired, national saving equals desired investment. For any given level of output, the goods market is brought into equilibrium by changes in the real interest rate.

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Macroeconomics Plus Myeconlab With Pearson Global Edition

ISBN: 377221

9th Canadian Edition

Authors: Andrew B. Abel ,Ben Bernanke ,Dean Croushore

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