In the Aggregate Expenditures Model, a Decrease in Government Spending

question 26

Multiple Choice

In the aggregate expenditures model, a decrease in government spending causes a(n) :

• A)upward shift in the aggregate expenditures curve.
• B)downward shift in the aggregate expenditures curve.
• C)shift in the 45-degree line.
• D)rightward movement along the aggregate expenditures curve.
• E)leftward movement along the aggregate expenditures curve.

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Definitions:

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