The figure below depicts an economy at short-run equilibrium at point A, where the aggregate demand...

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The figure below depicts an economy at short-run equilibrium at point A, where the aggregate demand (AD) curve intersects the 45 degree line. Aggregate demand, AD Co + I 45 degrees y* Aggregate demand (AD) decreases Consider a decrease of investment of $3 billion. Assume the economy's marginal propensity to consume (MPC) is 0.75. Based on this information, answer the questions that follow. The decrease in investment will shift the AD line down The multiplier in this economy is 1.333 The decrease in investment leads to no change Y = AD AD Co + C1(Y) + I by $ 3 billion initially. xin GDP of $0 Output (income), Y x billion. The figure below depicts an economy at short-run equilibrium at point A, where the aggregate demand (AD) curve intersects the 45 degree line. Aggregate demand, AD Co + I 45 degrees y* Aggregate demand (AD) decreases Consider a decrease of investment of $3 billion. Assume the economy's marginal propensity to consume (MPC) is 0.75. Based on this information, answer the questions that follow. The decrease in investment will shift the AD line down The multiplier in this economy is 1.333 The decrease in investment leads to no change Y = AD AD Co + C1(Y) + I by $ 3 billion initially. xin GDP of $0 Output (income), Y x billion.

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