Which of the following would likely cause an upward parallel shift in the AE curve and a rightward shift in the AD curve? an increase in the MPC an increase in the price level a decrease in the price level a reduction in government purchases an increase in the business confidence of firms.

Which of the following would likely cause an upward parallel shift in the AE curve and a rightward shift in the AD curve? an increase in the MPC an increase in the price level a decrease in the price level a reduction in government purchases an increase in the business confidence of firms.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter22: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 1P

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Question

Which of the following would likely cause an upward parallel shift in the AE curve and a rightward shift in the AD curve?

an increase in the MPC

an increase in the price level

a decrease in the price level

a reduction in government purchases

an increase in the business confidence of firms.

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