FIGURE 23-1 -Refer to Figure 23-1.Assume the Economy Is Initially in Equilibrium

question 12

Multiple Choice

FIGURE 23-1
-Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is .Now,suppose there is an increase in desired investment and no change in the price level.Which of the following statements describes the likely macroeconomic effects?

• A)The AE curve shifts up to ,the AD curve shifts to ,and a new equilibrium is established at point C,with real GDP at .
• B)The AE curve shifts down to ,the AD curve shifts to ,and a new equilibrium is established at point F,with real GDP at .
• C)The AE curve shifts to ,the AD curve shifts to ,and a new equilibrium is established at point E,with real GDP at .
• D)The AE curve shifts to ,the AD curve shifts to ,and a new equilibrium is established at point F,with real GDP at .
• E)The AE curve shifts to ,the AD curve shifts to ,and a new equilibrium is established at point E,with real GDP at .

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Teenage Females

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Social Relationships

The connections and interactions between individuals or groups, which can influence behaviors, emotions, and mental health.

Early Onset

Describes the appearance of symptoms or the initial occurrence of a condition earlier than is typical or expected.

Depressed Homosexuals

Points to individuals identifying as homosexual who are experiencing symptoms of depression, emphasizing the intersection of sexual orientation and mental health.