Consider a Simple Macro Model with a Given Price Level

question 42

Multiple Choice

Consider a simple macro model with a given price level and demand-determined output.An exogenous change in the price level causes a

• A)shift in both the AE and AD curves.
• B)movement along the AE curve and a shift in the AD curve.
• C)movement along both the AE and AD curves.
• D)shift in the AE curve and a movement along the AD curve.
• E)movement along AE but does not affect the AD curve.

---

Definitions:

Expelled

The act of being officially removed or barred from an institution or organization.

Overbilling

The practice of charging more than the agreed price or more than the services or goods provided are worth, often considered fraudulent or unethical.

Peanut Allergy

An allergic reaction that occurs when the body's immune system mistakenly identifies peanut proteins as harmful, leading to potentially severe symptoms.

Sole Proprietorship

A business structure where a single individual owns and operates the business, responsible for all debts and legal actions against the business.