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26 October, 03:13

If the AE curve lies above the 45 degree line

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  1. 26 October, 05:48
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    If the AE curve lies below the 45 degree line there is a inflation at full employment ... If the AE curve lies above the 45 degree line there is a recession at full employment. 7. If the AE curve lies below the 45 degree line spending is more than income at full employment.

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