If the level of autonomous spending increases at a given price level,
A)the aggregate expenditure line shifts upward; the economy moves upward along the aggregate demand curve
B)the aggregate expenditure line shifts downward; the economy moves upward along the aggregate demand curve
C)the aggregate expenditure line shifts upward; the aggregate demand curve shifts to the right
D)the aggregate expenditure line shifts downward; the aggregate demand curve shifts to the left
E)the aggregate expenditure curve shifts upward; the aggregate demand curve shifts to the left

Question

Quizplus · Accepted Answer

An increase in autonomous spending raises aggregate expenditure, shifting the aggregate expenditure line upward and increasing overall demand, which shifts the aggregate demand curve to the right.

If the Level of Autonomous Spending Increases at a Given