Figure 8.2 Alt text for Figure 8.2: In figure 8.2, a graph comparing real GDP and real aggregate expenditure.
Long description for Figure 8.2: Line AE1, begins a little less than half way along the x-axis and slopes up toward the end of the x-axis.Line AE2, begins at a point half way on the x-axis and slopes up to the top right corner.Line AE2 is to the left of AE1, and is on a similar path as the line AE1.Line Y = AE, originates at the vertex and slopes upward toward the top right corner.Line Y = AE meets line AE1 at point K, half way along both lines, and meets line AE2 at point N, plotted close to the right end of the line AE2.Point J is plotted a little less than half way along the line AE1, to the left of point K.Another point L is marked close to the right end of line AE1, to the right of point K.
-Refer to Figure 8.2.If the Canadian economy is currently at point N, which of the following could cause it to move to point K?
A)Households expect future income to decline.
B)Household wealth rises.
C)The firm's cash flow rises as profits rise.
D)Government expenditures increase.
E)Canadians begin importing more goods.

Question

Figure 8.2  Alt text for Figure 8.2: In figure 8.2, a graph comparing real GDP and real aggregate expenditure.
Long description for Figure 8.2: Line AE1, begins a little less than half way along the x-axis and slopes up toward the end of the x-axis.Line AE2, begins at a point half way on the x-axis and slopes up to the top right corner.Line AE2 is to the left of AE1, and is on a similar path as the line AE1.Line Y = AE, originates at the vertex and slopes upward toward the top right corner.Line Y = AE meets line AE1 at point K, half way along both lines, and meets line AE2 at point N, plotted close to the right end of the line AE2.Point J is plotted a little less than half way along the line AE1, to the left of point K.Another point L is marked close to the right end of line AE1, to the right of point K.
-Refer to Figure 8.2.If the Canadian economy is currently at point N, which of the following could cause it to move to point K?
A)Households expect future income to decline. 
B)Household wealth rises. 
C)The firm's cash flow rises as profits rise. 
D)Government expenditures increase. 
E)Canadians begin importing more goods.

Quizplus · Accepted Answer

The Answer of Figure 8.2  Alt text for Figure 8.2: In figure 8.2, a graph comparing real GDP and real aggregate expenditure.
Long description for Figure 8.2: Line AE1, begins a little less than half way along the x-axis and slopes up toward the end of the x-axis.Line AE2, begins at a point half way on the x-axis and slopes up to the top right corner.Line AE2 is to the left of AE1, and is on a similar path as the line AE1.Line Y = AE, originates at the vertex and slopes upward toward the top right corner.Line Y = AE meets line AE1 at point K, half way along both lines, and meets line AE2 at point N, plotted close to the right end of the line AE2.Point J is plotted a little less than half way along the line AE1, to the left of point K.Another point L is marked close to the right end of line AE1, to the right of point K.
-Refer to Figure 8.2.If the Canadian economy is currently at point N, which of the following could cause it to move to point K?
A)Households expect future income to decline. 
B)Household wealth rises. 
C)The firm's cash flow rises as profits rise. 
D)Government expenditures increase. 
E)Canadians begin importing more goods.

Figure 82 Alt Text for Figure 8