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Consider the AD Curve in the Simple Macro Model

Question 55

Multiple Choice

Consider the AD curve in the simple macro model.The simple multiplier is reflected by the


A) horizontal distance between initial macroeconomic equilibrium and the new intersection of the AD and AE curves in response to a change in autonomous expenditure.
B) downward movement along the AD curve in response to a change in autonomous expenditure.
C) size of the rightward shift of the AD curve in response to a change in autonomous expenditure.
D) upward movement along the AD curve in response to a change in autonomous expenditure.
E) size of the leftward shift of the AD curve in response to a rise in autonomous expenditure.

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