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AE and aggregate output (income) – RoyalCustomEssays

AE and aggregate output (income)

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AE and aggregate output (income)

You learned earlier that expenditures and income should always be equal. In this chapter, you learned that AE and aggregate output (income) can be different. Is there an inconsistency here? Explain.
If households decide to save more, saving in the aggregate may fall. Explain this in words.

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