FIGURE 23-1 Refer to Figure 23-1

Multiple Choice

FIGURE 23-1 Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is P₀.Now,suppose the AE curve shifts to AE¹ and we move to a new equilibrium level of GDP at Y₁ and point F on AD¹.A possible cause of this change in equilibrium is

A) an exogenous rise in the price level.
B) an exogenous fall in the price level.
C) an increase in autonomous consumption.
D) a decrease in desired net exports.
E) an increase in government purchases.