-Refer to Exhibit 10-7.If investment decreases,which of the following is possible? A) The AD curve shifts leftward from AD₂ to AD₁,the price level falls,and Real GDP remains constant. B) The AD curve shifts leftward from AD₄ to AD₃,the price level falls,and Real GDP remains constant. C) The AD curve shifts rightward from AD₁ to AD₂,the price level remains constant,and Real GDP rises. D) The AD curve shifts rightward from AD₃ to AD₄,the price level rises,and Real GDP remains constant. E) c and d

Question

Quizplus · Accepted Answer

The Answer of -Refer to Exhibit 10-7.If investment decreases,which of the following is possible? A) The AD curve shifts leftward from AD₂ to AD₁,the price level falls,and Real GDP remains constant. B) The AD curve shifts leftward from AD₄ to AD₃,the price level falls,and Real GDP remains constant. C) The AD curve shifts rightward from AD₁ to AD₂,the price level remains constant,and Real GDP rises. D) The AD curve shifts rightward from AD₃ to AD₄,the price level rises,and Real GDP remains constant. E) c and d