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Fill in the blanks to make the following statements correct. a. In the simple macro model, the price level was held constant . In the
Fill in the blanks to make the following statements correct. a. In the simple macro model, the price level was held constant . In the macro model of this chapter, the price level is exogenous b. A change in the price level shifts the AE curve because the price level change affects desired A. government expenditures and desired net exports. O B. investment expenditures. O C. consumption expenditures and desired net exports. O D. consumption expenditures and desired government expenditures. C. A rise in the price level causes a decrease in households' wealth, which leads to in desired consumption, which causes the AE curve to shift d. A rise in the domestic price level causes net exports to which causes the AE curve to shift e. Equilibrium GDP is determined by the position of the AE function for each given price level. An equilibrium point for a particular price level corresponds to one point on the curve. f. A rise in the price level causes a downward shift of the curve and a movement upward along the curve. g. A decrease in autonomous expenditure, with no change in the price level, causes the AE curve to shift | downward and causes the AD curve to shift to the left
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