Examlex

Solved

The Figure Shows Planned Aggregate Expenditure and Output for an Economy

question 95

Multiple Choice

The figure shows planned aggregate expenditure and output for an economy. The figure shows planned aggregate expenditure and output for an economy.   Suppose that the economy starts at PAE<sub>2</sub>. Which change would cause a move from PAE<sub>2</sub> to PAE<sub>3</sub>? A)  Consumption spending increases. B)  Investment decreases. C)  Imports increase. D)  Exports decrease. Suppose that the economy starts at PAE2. Which change would cause a move from PAE2 to PAE3?


Definitions:

Enclosure

The historical process in England of consolidating (enclosing) small landholdings into larger farms since the 13th century, which led to significant social and economic changes, primarily displacing peasant farmers.

Common Lands

Areas of land open for communal use, typically for grazing livestock, collecting firewood, or other resources, managed by local communities.

Landowners

Individuals or entities that possess legal ownership of land or property, often exercising significant social, economic, or political power.

Trading Centers

Locations known for being hubs of commercial exchange, where goods, services, and currencies are traded extensively.

Related Questions