-Refer to Exhibit 10-7

Multiple Choice

-Refer to Exhibit 10-7.If investment decreases,which of the following is possible?

A) The AD curve shifts leftward from AD₂ to AD₁,the price level falls,and Real GDP remains constant.
B) The AD curve shifts leftward from AD₄ to AD₃,the price level falls,and Real GDP remains constant.
C) The AD curve shifts rightward from AD₁ to AD₂,the price level remains constant,and Real GDP rises.
D) The AD curve shifts rightward from AD₃ to AD₄,the price level rises,and Real GDP remains constant.
E) c and d