Explain carefully: A change in the price level shifts the aggregate expenditures curve but not the aggregate
Question:
Explain carefully: “A change in the price level shifts the aggregate expenditures curve but not the aggregate demand curve.”
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This statement might seem counterintuitive at first but its important to understand the distinction between the aggregate expenditures AE curve and th...View the full answer
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Related Book For 
Macroeconomics
ISBN: 9780077337728
19th Edition
Authors: Campbell Mcconnell, Stanley Brue, Sean Flynn, Flynn Mcconnell Brue
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