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What simplifying assumptions does the traditional macroeconomic model make (in addition to those made in the NIPA)?

The simplifying assumptions are:

1) The household and institutions sector having only households.

2) Only the business sector invests; the household and institutions sector and the government sectors are supposed to only consume

3) Only the business sector produces

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9574806

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