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-In the Above Figure the Economy Is Initially at Point

Question 225

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-In the above figure the economy is initially at point A on the aggregate expenditure curve AE?. Suppose firms expect profits to increase and decide to increase investment. As a result

-In the above figure the economy is initially at point A on the aggregate expenditure curve AE?. Suppose firms expect profits to increase and decide to increase investment. As a result A) the AE curve shifts upward to a curve such as AE?. B) the AE curve shifts downward to a curve such as AE?. C) there is a movement along AE? to a point such as B. D) there is a movement along AE? to a point such as C.
-In the above figure the economy is initially at point A on the aggregate expenditure curve AE?. Suppose firms expect profits to increase and decide to increase investment. As a result


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

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