Suppose at Each Price Level, Autonomous Aggregate Expenditures Increase by $50

question 121

Multiple Choice

Suppose at each price level, autonomous aggregate expenditures increase by $50 billion. As a result, the aggregate expenditures curve shifts

• A) downward at each price level and results in a leftward shift in aggregate demand.
• B) upward at each price level and results in a rightward shift in aggregate demand.
• C) downward at each price level and results in a movement down along a given aggregate demand.
• D) upward at each price level and results in a movement up along a given aggregate demand.

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Definitions:

Total Profits

The total income of a business after subtracting total expenses from total revenue, showing the final earning.

Price

The amount of money required to purchase a good or service, often determined by supply and demand in the market.

Demand

The quantity of a product or service that consumers are willing and able to buy at a given price over a specified period of time.

Price

The expenditure needed to secure a product, service, or piece of property.