Exhibit 9-8 Keynesian aggregate-expenditures model In Exhibit 9-8, an increase in aggregate expenditures causes:
A)a movement down the aggregate demand curve from equilibrium real GDP $600 to equilibrium real GDP $1,000.
B)a movement up the aggregate demand curve from equilibrium real GDP $1,200 to equilibrium real GDP $1,000.
C)a shift of the aggregate demand curve to the right, causing equilibrium real GDP to increase from $600 to $1,000.
D)a shift of the aggregate demand curve to the left, causing equilibrium real GDP to decrease from $1,200 to $1,000.
E)no change in equilibrium real GDP.

Question

Exhibit 9-8 Keynesian aggregate-expenditures model  In Exhibit 9-8, an increase in aggregate expenditures causes:
A)a movement down the aggregate demand curve from equilibrium real GDP $600 to equilibrium real GDP $1,000. 
B)a movement up the aggregate demand curve from equilibrium real GDP $1,200 to equilibrium real GDP $1,000. 
C)a shift of the aggregate demand curve to the right, causing equilibrium real GDP to increase from $600 to $1,000. 
D)a shift of the aggregate demand curve to the left, causing equilibrium real GDP to decrease from $1,200 to $1,000. 
E)no change in equilibrium real GDP.

Quizplus · Accepted Answer

The Answer of Exhibit 9-8 Keynesian aggregate-expenditures model  In Exhibit 9-8, an increase in aggregate expenditures causes:
A)a movement down the aggregate demand curve from equilibrium real GDP $600 to equilibrium real GDP $1,000. 
B)a movement up the aggregate demand curve from equilibrium real GDP $1,200 to equilibrium real GDP $1,000. 
C)a shift of the aggregate demand curve to the right, causing equilibrium real GDP to increase from $600 to $1,000. 
D)a shift of the aggregate demand curve to the left, causing equilibrium real GDP to decrease from $1,200 to $1,000. 
E)no change in equilibrium real GDP.

Exhibit 9-8 Keynesian Aggregate-Expenditures Model in Exhibit 9-8, an Increase