Let AE = Aggregate Expenditures, C = Consumption, I_P =

question 69

Multiple Choice

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, JG = Government Purchases. Consider a simple aggregate expenditures model, where
JAE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous. All other things unchanged, a decrease in the price level

• A) causes a movement up along a given aggregate expenditures curve and raises the equilibrium real GDP.
• B) shifts the aggregate expenditures curve upwards and raises the equilibrium real GDP.
• C) causes a movement down a given aggregate expenditures curve and lowers the equilibrium real GDP.
• D) shifts the aggregate expenditures curve downwards and lowers the equilibrium real GDP.

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Definitions:

Goods-In-Bailment

A legal term referring to the temporary transfer of possession of personal property by one party to another, with the intent that the property will be returned.

Risk Of Loss

Risk of loss refers to the responsibility for damage or destruction of goods, determining which party bears the financial burden should goods be damaged during a transaction.

Delivery Driver

A delivery driver is a person who transports goods from a seller or distributor to the customer's location.

Agent Of

A representative or individual authorized to act on behalf of another person or entity in legal or business matters.