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In Panel (a) the AE curve shifts upward, what could cause this? Figure 2 Planned aggregate spending, A Ep,.nn.d (billions of dollars) $4,000 3,500

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In Panel (a) the AE curve shifts upward, what could cause this? Figure 2 Planned aggregate spending, A Ep,.nn.d (billions of dollars) $4,000 3,500 3,000 2 goo 2,000 1200 o Aggregate pnce (a) Change in Income Expenditure Equilibrium GDP x Real GDP $5001.0001 2,500 3,000 3.5004,000 (billions Of dollars) (b) Shift of the AD Curve E2 ADIE AD2 Real GDP O o O o Increase in G (government spending) Decrease in HH wealth due to a decrease in housing prices An increase in the overall price level A reduction in government spending (G)

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