FIGURE 23-1
-Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is .Now,suppose the AE curve shifts to and we move to a new equilibrium level of GDP at and point F on .A possible cause of this change in equilibrium is
A)an exogenous rise in the price level.
B)an exogenous fall in the price level.
C)an increase in autonomous consumption.
D)a decrease in desired net exports.
E)an increase in government purchases.

Question

FIGURE 23-1
-Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is  .Now,suppose the AE curve shifts to  and we move to a new equilibrium level of GDP at  and point F on  .A possible cause of this change in equilibrium is
A)an exogenous rise in the price level. 
B)an exogenous fall in the price level. 
C)an increase in autonomous consumption. 
D)a decrease in desired net exports. 
E)an increase in government purchases.

Quizplus · Accepted Answer

The Answer of  FIGURE 23-1
-Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is  .Now,suppose the AE curve shifts to  and we move to a new equilibrium level of GDP at  and point F on  .A possible cause of this change in equilibrium is
A)an exogenous rise in the price level. 
B)an exogenous fall in the price level. 
C)an increase in autonomous consumption. 
D)a decrease in desired net exports. 
E)an increase in government purchases.

FIGURE 23-1 -Refer to Figure 23-1.Assume the Economy Is Initially in Equilibrium