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State whether the following statements are true or false. If false, correct the statement. 

1. Once the level of full employment is reached, the Keynesian AS curve becomes a downward sloping curve. 

2. The rate of increase in exante consumption due to a unit increment in income is called marginal. 

3. An increase in autonomous spending causes aggregate output of final goods to increase by a larger amount through the multiplier process.

1 Answer

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1. False. AS curve will be still rising 

2. True 

3. True

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