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

question 75

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, a decrease 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.

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Definitions:

Standard Plus Plans

Insurance plans that offer basic coverage with the option to purchase additional benefits according to individual needs.

Deferred Profit Sharing

A retirement plan in which employees receive a portion of the company's profits at a later date, usually at retirement.

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for an employee’s future benefit.

Share Appreciation Rights

A type of employee benefit plan that gives an employee the right to receive cash or stock based on the increase in the price of the company shares.