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

question 32

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 .Other things being equal,exogenous changes in the price level will cause

• A)movement along the aggregate expenditure curve and shifts of the AD curve.
• B)movement along the aggregate expenditure curve and movement along the aggregate demand curve .
• C)shifts of the AE curve and shifts of the AD curve.
• D)shifts of the AE curve and movement along the aggregate demand curve .
• E)no change in either the AE curve or the AD curve.

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Definitions:

Internal

Pertaining to or occurring within an organization or entity.

Restraining Forces

Forces that counteract change in an organization by maintaining the status quo.

Driving Forces

Powerful influences or motivations that propel an individual, group, or organization towards achieving goals or initiating change.

Unfreezing

The initial phase in the change process where existing behaviors, attitudes, or norms are challenged or questioned in preparation for change.