In a Macro Model with a Constant Price Level,an Increase

question 76

Multiple Choice

In a macro model with a constant price level,an increase in government purchases will cause the AE curve to shift

• A)downward and the AD curve to shift to the right.
• B)downward and the AD curve to shift to the left.
• C)downward and a movement to the right along the AD curve.
• D)upward and the AD curve to shift to the left.
• E)upward and the AD curve to shift to the right.

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Definitions:

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Neurons in the brain that are thought to fire both when an individual performs an action and when they observe the same action performed by another, contributing to empathy and social understanding.