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If the price level is fixed and autonomous expenditures rise by $40, then the multiplier model would predict that the aggregate demand curve would:__________
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If the price level is fixed and autonomous expenditures rise by $40, then the multiplier model would predict that the aggregate demand curve would:__________

User Marilynn
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Answer: shift out by more than $40 if the mpe is between 0 and 1

Step-by-step explanation:

If the price level is fixed and autonomous expenditures rise by $40, then the multiplier model would predict that the aggregate demand curve would:

SHIFT OUT BY MORE THAN $40 IF THE MPE IS BETWEEN 0 AND 1

User Robert Klemme
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