Exhibit 9-8 Keynesian Aggregate Expenditures Model

Multiple Choice

Exhibit 9-8 Keynesian aggregate expenditures model
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In Exhibit 9-8, an increase in aggregate expenditures causes:

A) a movement down the aggregate demand curve from equilibrium real GDP $600 to equilibrium real GDP $1,000.
B) a movement up the aggregate demand curve from equilibrium real GDP $1,200 to equilibrium real GDP $1,000.
C) a shift of the aggregate demand curve to the right, causing equilibrium real GDP to increase from $600 to $1,000.
D) a shift of the aggregate demand curve to the left, causing equilibrium real GDP to decrease from $1,200 to $1,000.