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The Figure Given Below Represents the Macroeconomic Equilibrium in the Aggregate

Question 66

Multiple Choice

The figure given below represents the macroeconomic equilibrium in the aggregate income and aggregate expenditure framework. Assume that MPI is equal to zero.
The figure given below represents the macroeconomic equilibrium in the aggregate income and aggregate expenditure framework. Assume that MPI is equal to zero.    -Refer to Figure 10.4. Assume that the economy is initially at the equilibrium level E3. The economy can reach equilibrium level E1 if aggregate expenditure: A)  decreases by $200. B)  increases by $200. C)  decreases by $100. D)  increases by $100. E)  increases by $50.
-Refer to Figure 10.4. Assume that the economy is initially at the equilibrium level E3. The economy can reach equilibrium level E1 if aggregate expenditure:


A) decreases by $200.
B) increases by $200.
C) decreases by $100.
D) increases by $100.
E) increases by $50.

Correct Answer:

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