Suppose, the multiplier is 4. If the AE curve shifts down by 100 due to either investment slump or export slump, then:
A) the AD curve will shift to the left by 100.
B) the AD curve will shift to the left by 400.
C) the AD curve will shift to the right by 100.
D) the AS curve will shift to the left by 100.
Correct Answer:
Verified
Q90: In a diagram illustrating the savings and
Q91: Q92: If autonomous consumption decreases by 50, then: Q93: The paradox of thrift refers to the Q94: In an open macro model with no Q96: Larger the multiplier, larger will be the Q97: The marginal propensity to save (MPS) is Q98: In a closed economy without government, the Q99: A decrease in the marginal propensity to Q100: At the point where the aggregate expenditure
A)
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