The Figure Given Below Represents the Macroeconomic Equilibrium in the Aggregate

The figure given below represents the macroeconomic equilibrium in the aggregate income and aggregate expenditure framework. Assume that MPI is equal to zero.
Figure 10.4
In the figure:
C: Consumption
I₁ and I₂: Investment
G: Government Spending
X: Exports
-Refer to Figure 10.4. Starting at equilibrium level E3 equilibrium level E1 will be reached if aggregate expenditure:

A) decreases by $200.
B) increases by $200.
C) decreases by $100.
D) increases by $100.
E) increases by $50.

Correct Answer:

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