Consider the AD Curve in the Simple Macro Model

question 44

Multiple Choice

Consider the AD curve in the simple macro model.Suppose there is an increase in autonomous desired consumption at a given price level.The result is

• A)the AE curve shifts downward and the AD curve shifts to the left.
• B)the AE curve shifts downward and the AD curve shifts to the right.
• C)the AE curve shifts upward and the AD curve shifts to the left.
• D)the AE curve shifts upward and the AD curve shifts to the right.
• E)no change in either the AE or the AD curve.