Consider the Relationship Between the AE Curve and the AD

question 46

Multiple Choice

Consider the relationship between the AE curve and the AD curve.A fall in the amount of desired consumption,investment,government purchases,or net exports at any given level of national income

• A)causes a movement along the AD curve.
• B)causes a movement along the AE curve.
• C)causes a shift of the AE curve but no movement of the AD curve.
• D)shifts the AD curve to the left.
• E)shifts the AD curve to the right.

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Definitions:

Z-scores

An indicator that shows the number of standard deviations a data point is away from the average.

Greater Than

A mathematical symbol (>) used to indicate that the value on the left side is larger than the value on the right side.

Z-scores

Standardized scores that measure the distance of a score from the mean, indicating how many standard deviations an element is from the mean.