On the Aggregate Expenditure Graph, Suppose Autonomous Investment Decreases by $10

question 101

Multiple Choice

On the aggregate expenditure graph, suppose autonomous investment decreases by $10 billion.What will be the effect on the aggregate expenditure line?  

• A) The aggregate expenditure line will shift upward by $10 billion. 
• B) The aggregate expenditure line will shift by some multiple. 
• C) The aggregate expenditure line will shift downward by $10 billion. 
• D) The equilibrium level of real GDP demanded will decrease by $10 billion.

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Definitions:

Discharged

In legal terms, this means that a debt has been paid off or obligations have been fulfilled, releasing the debtor from further responsibilities.

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract, outlining terms and conditions of a relationship.

Material Breach

A significant violation of a contract that justifies termination of the agreement by the other party.

Major Difficulties

Challenges or obstacles of significant magnitude that impede progress or achievement.