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18 September, 10:12

If the AE curve lies above the 45 degree line

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  1. 18 September, 12:07
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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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