Let AE = Aggregate Expenditures, C = Consumption, I_P =

Multiple Choice

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment,
G = Government Purchases. Consider a simple aggregate expenditures model, where
AE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous. All other things unchanged, an increase in the price level,

A) shifts the aggregate expenditures curve upwards.
B) shifts the aggregate expenditures curve downwards.
C) causes a movement up along a given aggregate expenditures curve.
D) causes a movement down a given aggregate expenditures curve.