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

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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?

Decline in T0

✅✨

Decline in G

❌

Decline in C0

❌

Decline in I0

❌

Decline in t

❌

All of the above options.

❌

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