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The Aggregate Expenditure Model

The Aggregate Expenditure Model. The Aggregate Expenditure Model. Also know as the Income-Expenditure model or the Keynesian Cross model Assumes price level is fixed Based on planned spending , called aggregate expenditure (AE),a measure of what is wanted : AE = C + I + G + NX

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Induced spending - PowerPoint PPT Presentation

The Aggregate Expenditure Model