-In the Above Figure the Economy Is Initially at Point

question 313

Multiple Choice

-In the above figure the economy is initially at point A on aggregate expenditure curve AE₀. Suppose firms expect profits to increase and decide to increase investment. As a result

• A) the AE curve shifts upward to a curve such as AE₂.
• B) there is a movement along AE₁ to a point such as B.
• C) the AE curve shifts downward to a curve such as AE₁.
• D) there is a movement along AE₁ to a point such as C.

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Definitions:

Nerves

Bundles of fibers transmitting impulses of sensation to the brain or spinal cord, and impulses from these to the muscles and organs.

Fibrous Connective Tissue

A type of connective tissue rich in collagen fibers, providing structural support to various body parts.

Sheet-like Structure

A broad, flat, thin arrangement or formation, usually referring to living tissue or other materials.

Gastrointestinal Tract

The pathway extending from the mouth to the anus through which food is digested and absorbed into the body, including organs such as the stomach and intestines.