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

Question

Quizplus · Accepted Answer

An increase in autonomous consumer expenditure shifts the aggregate demand function up, leading to a higher equilibrium level of aggregate output, and causes the IS curve to shift to the right, reflecting an increase in investment and savings at each interest rate.

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