what is the key difference between the aggregate expenditure model and the aggre

Question

what is the key difference between the aggregate expenditure model and the aggregate demand/aggregate supply model? difference behween the aggregate expenditure model and the aggregate demand/aggregate supply model? 0 A, the aggregate demand aggregate supply model assumes that the price level is fixed O B. monetary and real factors interact in the aggregate demand/aggregate supply model C. the aggregate expenditure model assumes that the price level is fixed D. the aggregate expenditure model assumes that real GDP is fixed O E. the aggregate expenditure model examines monetary policy whereas the aggregate demand/aggregate supply model does not

Explanation / Answer

The aggregate expenditure model assumes that the price level is fixed. This model assumes a certain specific price level. While, the AD curve shows the relationship between price level and aggregate expenditure.

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