Multiple Choice
Refer to Figure 9.1 for the following questions.
Figure 9.1
-How does a decrease in government spending affect the aggregate expenditure line in Figure 9.1?
A) It shifts the aggregate expenditure line upward.
B) It shifts the aggregate expenditure line downward.
C) It increases the slope of the aggregate expenditure line.
D) It decreases the slope of the aggregate expenditure line.
Correct Answer:
Verified
Correct Answer:
Verified
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