11.18.2013_ECO_102

Between aggregate expenditure and gdp if then and

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Unformatted text preview: Relationship between Aggregate Expenditure and GDP IF … THEN … AND … Aggregate expenditure is equal to GDP inventories are unchanged the economy is in macroeconomic equilibrium. inventories rise GDP and employment decrease. inventories fall GDP and employment increase. Aggregate expenditure is less than GDP Aggregate expenditure is greater than GDP...
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