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The Slope of the AE Curve Is

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Essay

The slope of the AE curve is .80.What is the expenditure multiplier?
Everything else the same, by how much does equilibrium aggregate expenditure increase if
a. exports increase from $1.75 trillion to $2.25 trillion.
b. government expenditure on goods and services decrease from $2.0 trillion to $1.8 trillion.
c. investment increases from $1.2 trillion to $2.3 trillion.


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