Multiple Choice
How does an increase in government spending affect the aggregate expenditure line?
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
Q225: All of the following are components of
Q226: Consumption spending will _ when disposable income
Q227: If the marginal propensity to save is
Q228: Why do economists care about aggregate expenditures?
Q229: U.S.net export spending falls when<br>A)the price level
Q231: Which of the following correctly describes how
Q232: The key idea of the aggregate expenditure
Q233: The formula for aggregate expenditure is<br>A)AE =
Q234: Which of the following will reduce consumer
Q235: The aggregate expenditure model focuses on the