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The Figure Shows Planned Aggregate Expenditure and Output for an Economy

Question 92

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The figure shows planned aggregate expenditure and output for an economy. The figure shows planned aggregate expenditure and output for an economy.   Suppose that the economy starts at PAE<sub>2</sub>. Which change would cause a move from PAE<sub>2</sub> to PAE<sub>3</sub>? A)  The wealth level decreases. B)  Interest rates decrease. C)  The expected profitability of investments decrease. D)  Domestic income increases. Suppose that the economy starts at PAE2. Which change would cause a move from PAE2 to PAE3?


A) The wealth level decreases.
B) Interest rates decrease.
C) The expected profitability of investments decrease.
D) Domestic income increases.

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