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.

---

Definitions:

Set-Point Value

A predetermined value at which a system aims to maintain a specific variable, such as temperature or pressure, in automation and control systems.

Data Compare

A function or process of analyzing and identifying differences or similarities between two sets of data.

Transfer

The act of moving data, energy, or materials from one location, system, or medium to another.