If investment decreases by $20 billion and the economy's MPC is .5, the aggregate demand curve will shift: Select one: a. leftward by $40 billion at each price level. b. rightward by $20 billion at each price level. c. rightward by $40 billion at each price level. d. leftward by $20 billion at each price level.
If investment decreases by $20 billion and the economy's MPC is .5, the aggregate demand curve will shift: Select one: a. leftward by $40 billion at each price level. b. rightward by $20 billion at each price level. c. rightward by $40 billion at each price level. d. leftward by $20 billion at each price level.
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 6.13P
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If investment decreases by $20 billion and the economy's MPC is .5, the aggregate demand curve will shift:
Select one:
a. leftward by $40 billion at each price level.
b. rightward by $20 billion at each price level.
c. rightward by $40 billion at each price level.
d. leftward by $20 billion at each price level.
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