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Prlce Level 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.
Prlce Level 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 Po. Now, suppose there is an increase in desired investment and no change in the price level. Which of the following statements describes the likelyr macroeconomic effects? Select one: Q a. The AE curve shifts to AE2, the AD curve shifts to AD2, and a new equilibrium is established at point E, with real GDP at "i'g. O b. The AE curve shifts to AE', the AD curve shifts to AD1, and a new equilibrium is established at point E, with real GDP at'fg. O c. The AE curve shifts up to AEE, the AD curve shifts to AD2, and a new equilibrium is established at point C, with real GDP at \"(2. Q d. The AE curve shifts to A132, the AD curve shifts to AD1, and a new equilibrium is established at point F, with real GDP at Y2. D e. The AE curve shifts down to Alt-'1, the AD curve shifts to AD1, and a new equilibrium is established at point F, with real GDP at Y1. Dashed Aggregate Expendlture Price Level FIGURE 23-1 Refer to Figure 23-1. Assume the economy.r is initiallyr in equilibrium with desired aggregate expenditure equal to real GDP at point'v'. The price level is Po. Now, suppose there is an increase in desired investment and no change in the price level. Which of the following statements describes the likely macroeconomic effects? Select one
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