The figure shows planned aggregate expenditure and output for an economy. Suppose that the economy starts at PAE₂. Which change would cause a move from PAE₂ to PAE₁? A) The wealth level increases. B) Interest rates increase. C) Taxes decrease. D) Domestic income decreases.

Question

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The Answer of The figure shows planned aggregate expenditure and output for an economy. Suppose that the economy starts at PAE₂. Which change would cause a move from PAE₂ to PAE₁? A) The wealth level increases. B) Interest rates increase. C) Taxes decrease. D) Domestic income decreases.

The Figure Shows Planned Aggregate Expenditure and Output for an Economy