Real GDP with a Fixed Price Level

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The connection between real GDP and aggregate expenditure cannot be avoided. Different price levels help determine the aggregate expenditure of the real GDP. There are two elements, namely, aggregate expenditure schedule and curve that assist in better understanding of this connection. Using the schedule the aggregate planned expenditure can be achieved at every level of the real GDP. While with the curve a graph of this aggregate expenditure, schedules can be attained.

 

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