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

question 55

Multiple Choice

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment,
G = Government Purchases. Consider a simple aggregate expenditures model, where
AE = 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:

Behavioral Change

A modification in an individual's actions or reactions, often the result of interventions or personal development efforts.

Preparation Stage

A phase in behavioral change models where individuals get ready to take action within the near future.

Exercise Regularly

The practice of engaging in physical activity on a routine basis to improve or maintain one's health and fitness.

External Variable

Factors outside of a study or experiment that can influence or affect its outcome or the behavior of subjects under observation.