Multiple Choice
Suppose the level of autonomous spending increases at a given price level.How does this relate to the aggregate expenditure line and aggregate demand?
A) The aggregate expenditure line shifts upward, and the economy moves upward along the aggregate demand curve.
B) The aggregate expenditure line shifts downward, and the economy moves upward along the aggregate demand curve.
C) The aggregate expenditure line shifts upward, and the aggregate demand curve shifts to the right.
D) The aggregate expenditure line shifts downward, and the aggregate demand curve shifts to the left.
Correct Answer:

Verified
Correct Answer:
Verified
Q116: Suppose the price level increases.How will the
Q117: Suppose current real GDP is greater than
Q118: At the equilibrium level of real GDP,
Q119: Other things constant, how would a smaller
Q120: Suppose that the multiplier is 4, autonomous
Q122: What is the effect of a decrease
Q123: Other things constant, how does an increase
Q124: Which of the following is NOT included
Q125: On the aggregate expenditure graph, suppose autonomous
Q126: Suppose an increase in planned investment of