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Refer to Figure 1. According to the figure above, at what point is aggregate expenditure greater...

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Refer to Figure 1. According to the figure above, at what point is aggregate expenditure greater than GDP?

A) J

B) K

C) L

D) none of the above

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Answer #1

Ans is A

45° line is known as aggregate supply curve and aggregate expenditure curve is the aggregate demand curve

At point J clearly Aggregate expenditure is greater than GDP

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