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The Figure Shows Planned Aggregate Expenditure and Output for an Economy

question 117

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 shift the PAE curve upward? A)  An increase in wealth. B)  An increase in interest rates. C)  And increase in taxes. D)  An increase in imports. Suppose that the economy starts at PAE2. Which change would shift the PAE curve upward?


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