Consider a Simple Macro Model with a Given Price Level

question 42

Multiple Choice

Consider a simple macro model with a given price level and demand-determined output.An exogenous change in the price level causes a

• A)shift in both the AE and AD curves.
• B)movement along the AE curve and a shift in the AD curve.
• C)movement along both the AE and AD curves.
• D)shift in the AE curve and a movement along the AD curve.
• E)movement along AE but does not affect the AD curve.

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