In general, an increase in autonomous expenditure that is NOT created by a change in the price level results in a
A) rightward shift of the AD curve.
B) movement upward along the AD curve.
C) movement downward along the AD curve.
D) leftward shift of the AD curve.

Question

Quizplus · Accepted Answer

An increase in autonomous expenditure that is not due to a change in the price level (such as increased government spending, investment, or consumption) typically leads to an increase in aggregate demand. This is represented by a rightward shift of the aggregate demand (AD) curve, indicating a higher level of demand at each price level.

In General, an Increase in Autonomous Expenditure That Is NOT