Suppose at Each Price Level, Autonomous Aggregate Expenditures Fall by $80

question 113

Multiple Choice

Suppose at each price level, autonomous aggregate expenditures fall by $80 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.