

-In the above figure the economy is initially at point A on the aggregate expenditure curve AE?. Suppose investment decreases. 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.
Correct Answer:
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Q222: The multiplier is the amount by which
Q223: The multiplier effect exists because a change
Q225: Q225: Q226: The multiplier effect Q227: The multiplier is greater than 1 because Q231: 3 The Multiplier Q232: The multiplier effect on real GDP occurs Q234: The multiplier is the ratio of the Q239: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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A) generates instability in autonomous
A)
-When autonomous expenditure decreases,
A) the
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