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 C on .A possible cause of this change in equilibrium is
A)an increase in autonomous consumption.
B)an increase in desired investment.
C)an exogenous fall in the price level.
D)an exogenous rise in the price level.
E)an increase in desired net exports.

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 C on  .A possible cause of this change in equilibrium is
A)an increase in autonomous consumption. 
B)an increase in desired investment. 
C)an exogenous fall in the price level. 
D)an exogenous rise in the price level. 
E)an increase in desired net exports.

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 C on  .A possible cause of this change in equilibrium is
A)an increase in autonomous consumption. 
B)an increase in desired investment. 
C)an exogenous fall in the price level. 
D)an exogenous rise in the price level. 
E)an increase in desired net exports.

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