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:

Annually

A term that pertains to an event or item that occurs once every year.

Anticipated Growth

Anticipated growth refers to the expected increase in size, value, or importance of something, such as a company's revenue or an economy's GDP, over a future period.

Estimated Dividend

The predicted amount that a company is expected to pay out in dividends to its shareholders in the near future.

Constant Growth Rate

In finance, it refers to the steady rate at which a company’s dividends or earnings are expected to grow indefinitely.