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. Suppose that the economy starts at PAE₂. Which change would cause a move from PAE₂ to PAE₃?

• A) Consumption spending increases.
• B) Investment decreases.
• C) Imports increase.
• D) Exports decrease.

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Definitions:

Timely And Accurate

Describes information or processes that are delivered or completed within an expected time frame and with precision or correctness.

Accounting Information System

A system consisting of people, processes, and technology that manages financial data and supports business decisions.

Cost Effectiveness

An evaluation measure to determine how effectively a party is achieving its objectives relative to the costs incurred.

Human Involvement

Human involvement indicates the participation or role of individuals in a process or system, often highlighting the importance of human input and decision-making.