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Explain what is the difference between Aggregate Demand and Aggregate Expenditure and what explains the negative slope of AD curve?

Explain the following: Depict graphically the equilibrium real GDP for a private closed economy using both expenditure-output and leakage-injection approach. Now add export and import and determine the new point of equilibrium and explain what happens to the slope of S+M and AE schedule. Given MPS=.2 and MPM=.2 in order to increase real GDP by […]

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