Because the short-run aggregate expenditure model assumes that the price level is ________, its predicted effect of changes in autonomous expenditure on equilibrium output is ________ than the prediction of the AD/SAS model.
A) flexible; greater
B) fixed; greater
C) fixed; less
D) flexible; less
Correct Answer:
Verified
Q107: The vertical distance between the 45- degree
Q108: Q109: Suppose disposable income increases from $5 billion Q110: Actual aggregate expenditure is Q111: Suppose that, in 2012, firms discover that Q113: If the multiplier is 4 and there Q115: At equilibrium expenditure, Q116: If the MPC increases from 0.75 to Q117: A movement along the consumption function is Q304: 
A)always equal to real
A)aggregate planned expenditure equals real
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents