Exhibit 9-8 Keynesian Aggregate-Expenditures Model in Exhibit 9-8, an Increase

question 136

Multiple Choice

Exhibit 9-8 Keynesian aggregate-expenditures model In Exhibit 9-8, an increase in aggregate expenditures causes:

• A)a movement down the aggregate demand curve from equilibrium real GDP $600 to equilibrium real GDP $1,000.
• B)a movement up the aggregate demand curve from equilibrium real GDP $1,200 to equilibrium real GDP $1,000.
• C)a shift of the aggregate demand curve to the right, causing equilibrium real GDP to increase from $600 to $1,000.
• D)a shift of the aggregate demand curve to the left, causing equilibrium real GDP to decrease from $1,200 to $1,000.
• E)no change in equilibrium real GDP.