On the aggregate expenditure graph,if autonomous saving decreases by $15 billion,
A)the aggregate expenditure line shifts upward by $15 billion
B)planned investment increases by $15 billion
C)the aggregate expenditure line shifts downward by $15 billion
D)planned investment decreases by $15 billion
E)the equilibrium level of real GDP demanded decreases by $15 billion

Question

Quizplus · Accepted Answer

A decrease in autonomous saving implies an increase in autonomous consumption, which shifts the aggregate expenditure line upward by the same amount.

On the Aggregate Expenditure Graph,if Autonomous Saving Decreases by $15