Because the Short-Run Aggregate Expenditure Model Assumes That the Price

question 438

Multiple Choice

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) fixed; less
• B) flexible; greater
• C) fixed; greater
• D) flexible; less

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Definitions:

Changes Constantly

A characteristic of something that is continually undergoing modifications or alterations.

Household Income

The total amount of money earned by the members of a household, encompassing all sources of income.

Individual Journal Notes

Personal records or annotations made by individuals in journals for various purposes, including reflection, study, or record-keeping.

SPSS Syntax

The specific command language used in the SPSS (Statistical Package for the Social Sciences) software to perform statistical analysis and manipulate data.