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'J. I'IUURE D Aggregate Expenditure Function 45Iine Desired Aggregate Expenditure cc 0 / 0 400 800 1 ,200 1 .600 Actual National Income Refer to
'J. I'IUURE D Aggregate Expenditure Function 45Iine Desired Aggregate Expenditure cc 0 / 0 400 800 1 ,200 1 .600 Actual National Income Refer to Figure B. Ionathan is again drawing blanks about the components and determinants of the AE curve. What could be a possible explanation to him for the shift of the functions from AEo to AE1? A. Equilibrium national income has lowered to E1 due to a negative supply shock. B. Sustained leakage of savings from volatile consumption patterns lowers AEo. C. The absolute amount of net capital outow decreases with a new trade decit D. A booming US economy experiences an exogenous 10% rise in disposable income. E. The implicit GDP deator has recently dropped from 110.1 to 97.8 index points
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