If the Level of Autonomous Spending Increases at a Given

question 55

Multiple Choice

If the level of autonomous spending increases at a given price level,

• A)the aggregate expenditure line shifts upward; the economy moves upward along the aggregate demand curve
• B)the aggregate expenditure line shifts downward; the economy moves upward along the aggregate demand curve
• C)the aggregate expenditure line shifts upward; the aggregate demand curve shifts to the right
• D)the aggregate expenditure line shifts downward; the aggregate demand curve shifts to the left
• E)the aggregate expenditure curve shifts upward; the aggregate demand curve shifts to the left

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Definitions:

Federal Government Spending

Expenditure by the federal government on goods, services, and transfers to individuals and other governmental units.

Defense

Actions, strategies, and systems designed to protect a country from external threats and maintain national security.

Social Security

Social Security is a government program that provides financial assistance to people with an inadequate or no income, including the elderly, disabled, and survivors.

Medicare

A federal health insurance program primarily for individuals aged 65 and over, as well as for some younger people with disabilities.