What is the key difference between the aggregate expenditure model and the aggregate demand/aggregate supply model?
A) The aggregate demand/aggregate supply model assumes that the price level is fixed.
B) The aggregate expenditure model assumes that real GDP is fixed.
C) The aggregate expenditure model examines monetary policy, whereas the aggregate demand/aggregate supply model does not.
D) The aggregate expenditure model assumes that the price level is fixed.
E) Monetary and real factors interact in the aggregate demand/aggregate supply model.
Correct Answer:
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A) not
