Let AE = Aggregate Expenditures, C = Consumption, I_P =

question 160

Multiple Choice

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment,
G =Government Purchases.Consider a simple aggregate expenditures model, where
AE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous.All other things unchanged, an increase in the price level,

• A)shifts the aggregate expenditures curve upwards and causes the aggregate demand curve to shift right.
• B)shifts the aggregate expenditures curve downwards and causes the aggregate demand curve to shift left.
• C)shifts the aggregate expenditures curve upwards and causes a movement up along a given aggregate demand curve.
• D)shifts the aggregate expenditures curve downwards and causes a movement down along a given aggregate demand curve.

---

Definitions:

Forced Vital Capacity

The total volume of air that can be forcibly exhaled from the lungs after taking the deepest breath possible.

Lungs

Pair of respiratory organs in the chest of vertebrates where blood is oxygenated and carbon dioxide is removed.

Air

The invisible gaseous substance surrounding the earth, a mixture mainly of oxygen and nitrogen.

Dysrhythmia

An irregularity in heart rhythm; also called arrhythmia.