FIGURE 23-1 -Refer to Figure 23-1.Assume the Economy Is Initially in Equilibrium

question 41

Multiple Choice

FIGURE 23-1

-Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is P0.Other things being equal,exogenous changes in the price level will cause

• A)movement along the aggregate expenditure curve AE0 and shifts of the AD curve.
• B)movement along the aggregate expenditure curve AE0 and movement along the aggregate demand curve AD0.
• C)shifts of the AE curve and shifts of the AD curve.
• D)shifts of the AE curve and movement along the aggregate demand curve AD0.
• E)no change in either the AE curve or the AD curve.

---

Definitions:

Unconstitutional

A law or action is deemed unconstitutional if it violates the principles or stipulations of the Constitution.

Public Employees

Individuals employed by government entities at the federal, state, or local level, including civil servants and public sector workers.

Public Policy Exception

A legal principle allowing courts to refuse to enforce certain contracts or clauses if they are in violation of the established public policy of the state or country.

Employment At Will

A legal doctrine that means an employer can terminate an employee at any time for any reason, except an illegal one, or no reason without incurring legal liability.