On a Short-Run Macro Model Diagram,the Impact of a Decrease

question 76

Multiple Choice

On a short-run macro model diagram,the impact of a decrease in government purchases (G) is illustrated by

• A) a downward shift of the aggregate expenditure line by the full amount of the change in G
• B) an upward shift of the aggregate expenditure line followed by an equal downward shift of that line
• C) a leftward shift of the money supply curve
• D) a downward shift of the aggregate expenditure line by an amount less than the change in G
• E) the increase in real income

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