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If the slope of the AE model is the same as the slope of the consumption function then we know that Question 18 options: a)

If the slope of the AE model is the same as the slope of the consumption function then we know that Question 18 options: a) The economy has unemployed resources and real output can expand. b) This is not the answer c) the simple multiplier is equal to [1 / (marginal propensity to save)] d) net exports are negative e) net exports are positive

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