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Consider the Relationship Between the AE Curve and the AD

Question 138

Multiple Choice

Consider the relationship between the AE curve and the AD curve.A rise in the amount of desired investment expenditure at each level of national income


A) shifts the AD curve to the left.
B) shifts the AD curve to the right.
C) causes a movement along the AD curve.
D) causes a movement along the AE curve.
E) causes a shift of the AE curve but no movement of the AD curve.

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