Consider the AD Curve in the Simple Macro Model

question 73

Multiple Choice

Consider the AD curve in the simple macro model.The simple multiplier is reflected by the

• A)horizontal distance between initial macroeconomic equilibrium and the new intersection of the AD and AE curves in response to a change in autonomous expenditure.
• B)downward movement along the AD curve in response to a change in autonomous expenditure.
• C)size of the rightward shift of the AD curve in response to a change in autonomous expenditure.
• D)upward movement along the AD curve in response to a change in autonomous expenditure.
• E)size of the leftward shift of the AD curve in response to a rise in autonomous expenditure.

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