Solved

Which of the Following Best Characterizes the Relationship Between the Aggregate

Question 59

Multiple Choice

Which of the following best characterizes the relationship between the aggregate demand curve and the aggregate expenditure line?  


A)  If the aggregate expenditure line shifts while prices are constant, the resulting change in equilibrium output demanded is depicted as a movement along the aggregate demand curve. 
B)  If the aggregate expenditure line shifts while prices are constant, the resulting change in equilibrium output demanded is depicted as a shift of the aggregate demand curve. 
C)  If the aggregate expenditure line shifts, the aggregate demand curve also shifts. 
D)  If a movement occurs along the aggregate expenditure curve, movement also occurs along the aggregate demand curve.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions