In a Macro Model with a Constant Price Level, an Increase

question 58

Multiple Choice

In a macro model with a constant price level, an increase in autonomous desired consumption will cause the AE curve to shift

• A)upward and the AD curve to shift to the left.
• B)upward and a movement to the right along the AD curve.
• C)downward and the AD curve to shift to the left.
• D)upward and the AD curve to shift to the right.
• E)downward and the AD curve to shift to the right.

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Definitions:

Deductible

The amount paid out of pocket by the policyholder before an insurance company pays a claim.

Predetermined Amount

A specific quantity or sum set in advance.

Group Insurance

An insurance policy that covers multiple people under one contract, typically offered by employers, associations, or organizations.

Employer

An individual or organization that hires and pays for the services of workers under an expressed or implied contract of employment.