Use the following to answer questions .
Exhibit: Aggregate Expenditures Curve
Figure 13-6 ![Use the following to answer questions . Exhibit: Aggregate Expenditures Curve Figure 13-6 -(Exhibit: Aggregate Expenditures Curve) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I<sub>P</sub> = Planned Investment, G = Government Purchases. Further, I<sub>P</sub> and G are autonomous. Suppose government purchases rise by $100. As a result, A) the aggregate expenditures curve shifts upward by $100. B) there is a movement along the aggregate expenditures curve from $1,600 to $1,700. C) the aggregate expenditures curve shifts upward by $100 * the multiplier. D) there is a movement along the aggregate expenditures curve from $1,600 to an amount equal to [$1,600 + ($100 * the multiplier) ].](https://d2lvgg3v3hfg70.cloudfront.net/TB7736/11eac5e6_e6f9_c5eb_a396_fb37f6dfbe5a_TB7736_00_TB7736_00_TB7736_00_TB7736_00_TB7736_00_TB7736_00_TB7736_00_TB7736_00_TB7736_00_TB7736_00_TB7736_00_TB7736_00.jpg)
-(Exhibit: Aggregate Expenditures Curve) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, IP = Planned Investment, G = Government Purchases. Further, IP and G are autonomous. Suppose government purchases rise by $100. As a result,
A) the aggregate expenditures curve shifts upward by $100.
B) there is a movement along the aggregate expenditures curve from $1,600 to $1,700.
C) the aggregate expenditures curve shifts upward by $100 * the multiplier.
D) there is a movement along the aggregate expenditures curve from $1,600 to an amount equal to [$1,600 + ($100 * the multiplier) ].
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