Think in terms of the effect a fall in the price level has on aggregate demand (in the AD/AS model) as well as on the aggregate expenditure curve (in the AE model). In the AE model, the AE curve shifts
a. downward, and in the AD/AS model, it decreases the quantity of aggregate demand, which is shown as a movement down along the AD curve
b. downward, and in the AD/AS model, it increases the quantity of aggregate demand, which is shown as a movement up along the AD curve
c. downward, and in the AD/AS model, it increases the quantity of aggregate demand, which is shown as a movement along the AD curve
d. upward, and in the AD/AS model, it decreases the quantity of aggregate demand, which is shown as a movement down along the AD curve
e. upward, and in the AD/AS model, it increases the quantity of aggregate demand, which is shown as a movement down along the AD curve
E
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Contractionary fiscal policy leads to a ________
A) leftward shift of the labor demand curve B) rightward shift of the labor supply curve C) leftward shift of the labor supply curve D) rightward shift of the labor demand curve
Which of the following is NOT considered an example of a capital good?
A) a miner's cap B) a GPS tracking device C) an airport kiosk D) a U.S. government bond E) a stethoscope
If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals
A) 225. B) 250. C) 300. D) 450.
The sum of public and private saving in an economy is equal to
A) T - TR - G. B) I - C - G. C) Y - C - T. D) Y - C - G.