In the Keynesian cross diagram,an increase in autonomous consumer expenditure causes the aggregate demand function to shift up,the equilibrium level of aggregate output to ________,and the IS curve to shift to the ________,everything else held constant.
A)rise;left
B)rise;right
C)fall;left
D)fall;right

Question

Quizplus · Accepted Answer

An increase in autonomous consumer expenditure increases aggregate demand, leading to a higher equilibrium level of aggregate output. This, in turn, causes the IS curve, which represents equilibrium in the goods market, to shift to the right, reflecting an increase in income and output at each interest rate.

In the Keynesian Cross Diagram,an Increase in Autonomous Consumer Expenditure