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15-04-2019
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If the AE curve lies above the 45 degree line

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15-04-2019

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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