Exhibit 10-7 -Refer to Exhibit 10-7. If Autonomous Consumption Increases,which of the Consumption

Multiple Choice

Exhibit 10-7

-Refer to Exhibit 10-7. If autonomous consumption increases,which of the following is possible?

A) The AD curve will shift rightward from AD₁ to AD₂, the price level will remain constant, and Real GDP will rise.
B) The AD curve will shift leftward from AD₄ to AD3, the price level will fall, and Real GDP will remain constant.
C) The AD curve will shift rightward from AD₃ to AD₄, the price level will remain constant, and Real GDP will rise.
D) The AD curve will shift rightward from AD₁ to AD₂, the price level will rise, and Real GDP will remain constant.