How Does a Decrease in Government Spending Affect the Aggregate

question 220

Multiple Choice

How does a decrease in government spending affect the aggregate expenditure line?

• A)It shifts the aggregate expenditure line upward.
• B)It shifts the aggregate expenditure line downward.
• C)It increases the slope of the aggregate expenditure line.
• D)It decreases the slope of the aggregate expenditure line.
• E)It has no effect on the aggregate expenditure line.

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Definitions:

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