The major basic premise of the aggregate expenditures model is that if the total demand for output increases, then firms will raise their prices.

Name: The major basic premise of the aggregate expenditures model is that if the total demand for output increases, then firms will raise their prices.
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The aggregate expenditures model assumes that if total demand increases, firms will increase output rather than prices, as prices are assumed to be fixed in the short run.

The Major Basic Premise of the Aggregate Expenditures Model Is