An upward shift of the aggregate expenditures schedule might be caused by
A) a decrease in exports, with no change in imports.
B) a decrease in imports, with no change in exports.
C) an increase in exports, with an equal decrease in investment spending.
D) an increase in imports, with no change in exports.

Question

Quizplus · Accepted Answer

A decrease in imports will increase the aggregate expenditures as it increases the domestic demand for goods and services. This will shift the aggregate expenditures schedule upward. The other choices either have no effect on aggregate expenditures or have offsetting effects that do not result in an upward shift.

An Upward Shift of the Aggregate Expenditures Schedule Might Be