What Is the Key Difference Between the Aggregate Expenditure Model

question 245

Multiple Choice

What is the key difference between the aggregate expenditure model and the aggregate demand/aggregate supply model?

• A) the aggregate expenditure model examines monetary policy whereas the aggregate demand/aggregate supply model does not
• B) monetary and real factors interact in the aggregate demand/aggregate supply model
• C) the aggregate expenditure model assumes that the price level is fixed
• D) the aggregate demand/aggregate supply model assumes that the price level is fixed
• E) the aggregate expenditure model assumes that real GDP is fixed

---

Definitions:

Mechanical

Pertaining to the design, operation, or working of machines or machinery; involving moving parts or systems.

SSD

Solid State Drive; a type of non-volatile storage media that uses integrated circuit assemblies to store data.

Loopback Plug

A troubleshooting device that allows port testing.