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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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This document was uploaded on 03/29/2014.
- Spring '14