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15) 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

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15) 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 Po. Now, suppose there is an exogenous rise in the price level to P1. Which of the following statements describes the likely macroeconomic effects? A) The AE curve shifts to AEl, a new equilibrium is established at point U, and the economy moves from point B to point A along ADO B) The AE curve shifts to AE-, a new equilibrium is established at point W, and the economy moves from point B to point C along ADO. C) The AE curve shifts to AE], a new equilibrium is established at point U, and the AD curve shifts from ADD to AD1, and equilibrium from point B to point D. D) The AE curve shifts to AE-, a new equilibrium is established at point W, and the AD curve shifts from ADO to AD1, and equilibrium moves from point B to point D

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