Which of the following statements represents a correct and sequentially accurate economic explanation?
A) If consumption falls,total expenditures on goods and services rises,and the AD curve shifts leftward.
B) If investment increases,total expenditures on goods and services falls,and the AD curve shifts leftward.
C) If net exports rise,total expenditures on goods and services rises,and the AD curve shifts rightward.
D) If consumption falls,total expenditures on goods and services falls,and the AD curve shifts leftward.
E) c and d

Question

Quizplus · Accepted Answer

C) Correct because an increase in net exports means the country is selling more abroad than it is buying from abroad, which increases total expenditures on goods and services domestically, leading to a rightward shift in the Aggregate Demand (AD) curve. D) Correct because a fall in consumption means people are spending less on goods and services, leading to a decrease in total expenditures, which causes the AD curve to shift leftward.

Which of the Following Statements Represents a Correct and Sequentially