In the aggregate expenditure model, why is it important to know the factors that determine consumption spending, investment spending, government purchases, and net exports? because they us understand
a. how macroeconomic equilibrium is determined in the aggregate expenditure model.
b. how the level of aggregate expenditure and gdp are determined in the economy.
c. the relationship between aggregate expenditure and real gdp.
d. all of the above.
Answers: 3
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