Recall the PAE model, where  PAE = C + I P  + G;  C = C 0  + c(Y-T) ;    I P...

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Recall the PAE model, where 

PAE = C + I^P + G; 

C = C₀ + c(Y-T) ;   I^P = I₀ ;   G= G₀;   T = T₀ + tY.

The diagram below depicts this PAE model.

In the diagram above, what can explain the movement from PAE₁ to PAE_new?

Increase in G0

0%

Increase in T0

100%

Increase in C0

0%

Increase in I0

0%

Increase in t

0%

(a), (b), (c), (d) are correct

0%

All of the above options are correct

0%

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