Suppose the Level of Autonomous Spending Increases at a Given

question 121

Multiple Choice

Suppose the level of autonomous spending increases at a given price level.How does this relate to the aggregate expenditure line and aggregate demand?  

• A) The aggregate expenditure line shifts upward, and the economy moves upward along the aggregate demand curve. 
• B) The aggregate expenditure line shifts downward, and the economy moves upward along the aggregate demand curve. 
• C) The aggregate expenditure line shifts upward, and the aggregate demand curve shifts to the right. 
• D) The aggregate expenditure line shifts downward, and the aggregate demand curve shifts to the left.

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