Explain in words why rising prices reduce the multiplier effect of an autonomous increase in aggregate demand.

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Macroeconomics Principles And Policy

ISBN: 9780324586213

11th Edition

Authors: William J. Baumol, Alan S. Blinder

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Question Posted: Sep 01, 2012 02:47 AM

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Explain in words why rising prices reduce the multiplier effect of an autonomous increase in aggregate demand.

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Rising prices reduce the multiplier because the real val...View the full answer

Macroeconomics Principles And Policy

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