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Using Figure 2 Above, Suppose That the Economy Started at PAE2

Question 60

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  Using Figure 2 above, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE1 might be: A)  wealth level decreases. B)  interest rates decrease. C)  expected profitability of investments increase. D)  domestic income decreases. Using Figure 2 above, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE1 might be:


A) wealth level decreases.
B) interest rates decrease.
C) expected profitability of investments increase.
D) domestic income decreases.

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