ed The figure shows planned aggregate expenditure and output for an economy. PAE=Y Planned Aggregate Expenditure (PAE) PAE PAE2 PAE, Y₂ Y3 Actual Aggregate Expenditure (Output or GDP, Y) Suppose that the economy starts at PAE2. What change would cause a move from PAE2 to PAE₁? Multiple Choice Consumption increases Exports increase. Government spending decreases. Investment increases
ed The figure shows planned aggregate expenditure and output for an economy. PAE=Y Planned Aggregate Expenditure (PAE) PAE PAE2 PAE, Y₂ Y3 Actual Aggregate Expenditure (Output or GDP, Y) Suppose that the economy starts at PAE2. What change would cause a move from PAE2 to PAE₁? Multiple Choice Consumption increases Exports increase. Government spending decreases. Investment increases
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 4.8P
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The figure shows planned aggregate expenditure and output for an economy.
PAE=Y
Planned Aggregate Expenditure (PAE)
PAE
PAE2
PAE,
Y₂
Y3
Actual Aggregate Expenditure (Output or GDP, Y)
Suppose that the economy starts at PAE2. What change would cause a move from PAE2 to PAE₁?
Multiple Choice
Consumption increases
Exports increase.
Government spending decreases.
Investment increases
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