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-In the Above Figure the Economy Is Initially at Point

Question 205

Multiple Choice

  -In the above figure the economy is initially at point A on aggregate expenditure curve AE₀.Suppose investment decreases.As a result A)  the AE curve shifts upward to a curve such as AE₂. B)  the AE curve shifts downward to a curve such as AE₁. C)  there is a movement along AE₁ to a point such as B. D)  there is a movement along AE₁ to a point such as C.
-In the above figure the economy is initially at point A on aggregate expenditure curve AE₀.Suppose investment decreases.As a result


A) the AE curve shifts upward to a curve such as AE₂.
B) the AE curve shifts downward to a curve such as AE₁.
C) there is a movement along AE₁ to a point such as B.
D) there is a movement along AE₁ to a point such as C.

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