-Refer to Figure 14-9.If the aggregate expenditure line shifts from AE₁(r = 8%) to AE₂(r = 10%) ,which of the following is the most likely cause of that shift?

Name: -Refer to Figure 14-9.If the aggregate expenditure line shifts from AE 1 (r = 8%)to AE 2 (r = 10%),which of the following is the most likely cause of that shift?
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Question

-Refer to Figure 14-9.If the aggregate expenditure line shifts from AE₁(r = 8%)to AE₂(r = 10%),which of the following is the most likely cause of that shift?

Quizplus · Accepted Answer

An increase in government purchases directly increases aggregate expenditure, which can shift the aggregate expenditure line upward, as described in the scenario.