Private spending Price level 0 ON Q₁ Real Output B с Q1 Q₂ Real Output AE₂ -AE₁ -AD₂ AD₁ 7. Refer to the above diagrams. A decline in aggregate expenditures from AE2 to AE1 resulting from the real balances, interest-rate effect, and foreign purchases effects would be depicted as: a. a movement from A to C along aggregate demand curve AD1. b. a movement from C to A along aggregate demand curve AD1. C. a shift of aggregate demand from AD1 to AD2. d. a shift of aggregate demand from AD2 to AD1.ss

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Private spending
گیا
Price level
P₂
Ŕ™
0
Real Output
B
C
Q1
Q₂
Real Output
AE2
-AE₁
-AD2
AD₁
7. Refer to the above diagrams. A decline in aggregate expenditures from AE2 to AE1
resulting from the real balances, interest-rate effect, and foreign purchases effects
would be depicted as:
a. a movement from A to C along aggregate demand curve AD1.
b. a movement from C to A along aggregate demand curve AD1.
C. a shift of aggregate demand from AD1 to AD2.
d.
a shift of aggregate demand from AD2 to AD1.ss
Transcribed Image Text:Private spending گیا Price level P₂ Ŕ™ 0 Real Output B C Q1 Q₂ Real Output AE2 -AE₁ -AD2 AD₁ 7. Refer to the above diagrams. A decline in aggregate expenditures from AE2 to AE1 resulting from the real balances, interest-rate effect, and foreign purchases effects would be depicted as: a. a movement from A to C along aggregate demand curve AD1. b. a movement from C to A along aggregate demand curve AD1. C. a shift of aggregate demand from AD1 to AD2. d. a shift of aggregate demand from AD2 to AD1.ss
Price level (GDP deflator, 2005 = 100)
130
120
110
100
90
12.0 12.5 13.0 13.5 14.0 14.5
Real GDP (trillions of 2005 dollars)
11. The curve labeled A in the above figure is a
a. short-run aggregate demand curve.
b. short-run aggregate supply curve.
c. long-run aggregate demand curve.
d. long-run aggregate supply curve.
Transcribed Image Text:Price level (GDP deflator, 2005 = 100) 130 120 110 100 90 12.0 12.5 13.0 13.5 14.0 14.5 Real GDP (trillions of 2005 dollars) 11. The curve labeled A in the above figure is a a. short-run aggregate demand curve. b. short-run aggregate supply curve. c. long-run aggregate demand curve. d. long-run aggregate supply curve.
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