-In the Above Figure the Economy Is Initially at Point

Multiple Choice

-In the above figure the economy is initially at point A on aggregate expenditure curve AE₀. Suppose firms expect profits to increase and decide to increase investment. As a result

A) the AE curve shifts upward to a curve such as AE₂.
B) there is a movement along AE₁ to a point such as B.
C) the AE curve shifts downward to a curve such as AE₁.
D) there is a movement along AE₁ to a point such as C.