Look back at the income-expenditure diagram in Figure 3 and explain why some level of real GDP
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Look back at the income-expenditure diagram in Figure 3 and explain why some level of real GDP other than $6,000 (say, $5,000 or $7,000) is not an equilibrium on the demand side of the economy. Do not give a mechanical answer to this question. Explain the economic mechanism involved.
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At any level of GDP other than the sin...View the full answer
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Related Book For
Economics Principles and Policy
ISBN: 978-1305280595
13th edition
Authors: William Baumol, Alan Blinder
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