Other things being equal, as the price level rises exogenously, the aggregate expenditure (AE)function shifts
A)down and the economy will move upward to the left along the AD curve.
B)to the right and the AD curve will also shift to the right.
C)upward and the economy moves upward to the left along the AD curve.
D)down and the economy will move downward to the right along the AD curve.
E)upward and the economy moves downward to the right along the AD curve.

Question

Quizplus · Accepted Answer

The Answer of Other things being equal, as the price level rises exogenously, the aggregate expenditure (AE)function shifts
A)down and the economy will move upward to the left along the AD curve.
B)to the right and the AD curve will also shift to the right.
C)upward and the economy moves upward to the left along the AD curve.
D)down and the economy will move downward to the right along the AD curve.
E)upward and the economy moves downward to the right along the AD curve.

Other Things Being Equal, as the Price Level Rises Exogenously