ed The figure shows planned aggregate expenditure and output for an economy. PAE=Y Planned Aggregate Expenditure (PAE) PAE PAE2 PAE, Y₂ Y3 Actual Aggregate Expenditure (Output or GDP, Y) Suppose that the economy starts at PAE2. What change would cause a move from PAE2 to PAE₁? Multiple Choice Consumption increases Exports increase. Government spending decreases. Investment increases
ed The figure shows planned aggregate expenditure and output for an economy. PAE=Y Planned Aggregate Expenditure (PAE) PAE PAE2 PAE, Y₂ Y3 Actual Aggregate Expenditure (Output or GDP, Y) Suppose that the economy starts at PAE2. What change would cause a move from PAE2 to PAE₁? Multiple Choice Consumption increases Exports increase. Government spending decreases. Investment increases
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![ed
The figure shows planned aggregate expenditure and output for an economy.
PAE=Y
Planned Aggregate Expenditure (PAE)
PAE
PAE2
PAE,
Y₂
Y3
Actual Aggregate Expenditure (Output or GDP, Y)
Suppose that the economy starts at PAE2. What change would cause a move from PAE2 to PAE₁?
Multiple Choice
Consumption increases
Exports increase.
Government spending decreases.
Investment increases](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe90d44b6-d16d-448f-b2a6-371784ae0b45%2F0215616d-a4a9-4509-a8fc-b0f042137ace%2Fp352wb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ed
The figure shows planned aggregate expenditure and output for an economy.
PAE=Y
Planned Aggregate Expenditure (PAE)
PAE
PAE2
PAE,
Y₂
Y3
Actual Aggregate Expenditure (Output or GDP, Y)
Suppose that the economy starts at PAE2. What change would cause a move from PAE2 to PAE₁?
Multiple Choice
Consumption increases
Exports increase.
Government spending decreases.
Investment increases
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