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Exhibit 10-7 -Refer to Exhibit 10-7. If Autonomous Consumption Increases,which of the Consumption

question 53

Multiple Choice

Exhibit 10-7
Exhibit 10-7    -Refer to Exhibit 10-7. If autonomous consumption increases,which of the following is possible? A)  The AD curve will shift rightward from AD<sub>1</sub> to AD<sub>2</sub>, the price level will remain constant, and Real GDP will rise. B)  The AD curve will shift leftward from AD<sub>4</sub> to AD3, the price level will fall, and Real GDP will remain constant. C)  The AD curve will shift rightward from AD<sub>3</sub> to AD<sub>4</sub>, the price level will remain constant, and Real GDP will rise. D)  The AD curve will shift rightward from AD<sub>1</sub> to AD<sub>2</sub>, the price level will rise, and Real GDP will remain constant.
-Refer to Exhibit 10-7. If autonomous consumption increases,which of the following is possible?


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