Aggregate expenditure will shift upward if:
A)consumption or investment or government expenditure or net exports rise.
B)consumption or investment or government expenditure or net exports fall.
C)the government reduces its expenditure and increases its tax collection.
D)the marginal propensity to consume falls.

Question

Quizplus · Accepted Answer

Aggregate expenditure is the sum of consumption spending, investment spending, government spending, and net exports. Therefore, if any of these components rise, aggregate expenditure will shift upward.

Aggregate Expenditure Will Shift Upward If