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Economics 11 Unit 5
The Aggregate Expenditures Model (Closed Economy) -…
Economics 11 Unit 5
The Aggregate Expenditures Model (Closed Economy) - AE Model
(One of the main assumptions of the aggregate expenditures model is that prices in the economy are fixed.)
Keynesian Model
- (John Maynard Keynes - British economist)
- Keynesian Cross
- Amount of goods/services produced and the level of employment depend directly on level of AE (total spending).
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Resources:
McConnell, C.R., Brue, S.L. and Flynn, S.M. (2021).Economics, 22nd edition. Chapter 31, pages 598 - 603. Singapore: McGraw Hill Education
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