-Refer to Exhibit 10-7

question 12

Multiple Choice

-Refer to Exhibit 10-7.If autonomous consumption increases,which of the following is possible?

• A) The AD curve will shift rightward from AD₁ to AD₂,the price level will remain constant,and Real GDP will rise.
• B) The AD curve will shift leftward from AD₄ to AD₃,the price level will fall,and Real GDP will remain constant.
• C) The AD curve will shift rightward from AD₃ to AD₄,the price level will remain constant,and Real GDP will rise.
• D) The AD curve will shift rightward from AD₁ to AD_2, the price level will rise,and Real GDP will remain constant.