Consider a Simple Macro-Model with Demand-Determined Output

Multiple Choice

Consider a simple macro-model with demand-determined output.An exogenous increase in the domestic price level will ________ the real value of the private sector's wealth,which leads to ________ in autonomous consumption and thus ________ shift in the AE function.

A) increase; a decrease; a downward
B) increase; an increase; a downward
C) increase; an increase; an upward
D) reduce; a decrease; a downward
E) reduce; an increase; an upward