Suppose That a Pair of Graphs Represents a Situation in Which

question 50

Multiple Choice

Suppose that a pair of graphs represents a situation in which the aggregate expenditure line and the aggregate demand curve have shifted.What change caused the shift of the aggregate expenditure line?  

• A) a change in disposable income 
• B) a change in the level of income 
• C) a change in autonomous investment 
• D) a change in the level of real GDP

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Definitions:

Annual Income

The total amount of money earned by an individual or organization in one year from all sources before taxes.

Positively Correlated

A relationship between two variables where if one variable increases, the other one also increases.

Positively Correlated

Refers to a relationship between two variables where they move in the same direction, meaning as one variable increases, the other variable also increases.

Outdoor Temperature

The temperature of the air outside, which can vary widely depending on geographic location, time of day, and season.