Solved

-Refer to Figure 15-2

Question 152

Multiple Choice

-Refer to Figure 15-2.If the economy is initially at equilibrium at $7 trillion,what is the least likely cause of the shift of the aggregate expenditure line from AE<sub>1 </sub>to AE<sub>2</sub>,and the shift of the aggregate demand curve from AD<sub>1</sub> to AD<sub>2</sub>? A) An increase in government purchases B) A decrease in taxes C) An increase in autonomous consumption D) An increase in the money supply E) A decrease in the price level
-Refer to Figure 15-2.If the economy is initially at equilibrium at $7 trillion,what is the least likely cause of the shift of the aggregate expenditure line from AE1 to AE2,and the shift of the aggregate demand curve from AD1 to AD2?


A) An increase in government purchases
B) A decrease in taxes
C) An increase in autonomous consumption
D) An increase in the money supply
E) A decrease in the price level

Correct Answer:

verifed

Verified

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

Related Questions

Q14: After a positive demand shock,what are the

Q54: Stagflation<br>A) is caused by a negative demand

Q56: Which of the following would shift the

Q77: If output is below the full-employment level

Q92: If the Fed conducts an open market

Q103: In the short run,the price level<br>A) will

Q122: Because the Fed increased the money supply

Q129: A positive supply shock causes stagflation in

Q151: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3970/.jpg" alt=" -Refer to Figure

Q181: If the Fed conducts an open market