An Increase In_________ Shifts the AE Curve_________ and an Increase

question 152

Multiple Choice

An increase in_________ shifts the AE curve_________ and an increase in shifts the aggregate demand curve_________ .

• A) autonomous expenditure; upward; the price level; rightward
• B) the price level; downward; autonomous expenditure; rightward
• C) autonomous expenditure; upward; the price level; leftward
• D) the price level; upward; autonomous expenditure; leftward

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes, reflecting the value of goods and services at constant prices.

GDP

Gross Domestic Product is an indicator of a nation's economic health, showing the total value of all products and services made within a specific timeframe.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP to account for inflation.

Real GDP

The measure of a nation's economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.