Consider the Relationship Between the AE Curve and the AD

question 139

Multiple Choice

Consider the relationship between the AE curve and the AD curve.A fall in the amount of desired consumption,investment,government purchases,or net exports at any given level of national income

• A)shifts the AD curve to the left.
• B)shifts the AD curve to the right.
• C)causes a movement along the AD curve.
• D)causes a movement along the AE curve.
• E)causes a shift of the AE curve but no movement of the AD curve.

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Definitions:

Elimination

A method in algebra for solving systems of equations, removing one variable at a time to find their values.

Linear Equations

Equations between two variables that produce a straight line when graphed.

Consistent

In the context of systems of equations, it refers to a system that has at least one set of solutions.

Inconsistent

Describes a system of equations that has no solution because the equations represent parallel lines which never meet.