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In the Aggregate Expenditure (AE) Model, the Economy Is Driven

Question 59

Multiple Choice

In the aggregate expenditure (AE) model, the economy is driven to its equilibrium by changes in


A) government expenditures on goods and services that are the result of changes in real GDP.
B) investment that are the result of changes in real GDP.
C) autonomous expenditures that are the result of changes in real GDP.
D) induced expenditures that are the result of changes in real GDP.
E) net taxes that are the result of changes in real GDP.

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