Which of the following statements represents a correct and sequentially accurate economic explanation?
A) If government purchases rise,total expenditures on goods and services rises,and the AD curve shifts leftward.
B) If government purchases rise,total expenditures on goods and services rises,and the AD curve shifts rightward.
C) If consumption rises,total expenditures on goods and services rises,and the AD curve shifts rightward.
D) If consumption rises,total expenditures on goods and services rises,and the quantity demanded of Real GDP rises.
E) b and c

Question

Quizplus · Accepted Answer

Both statements B and C correctly describe how an increase in government purchases or consumption leads to an increase in total expenditures on goods and services, which in turn causes the aggregate demand (AD) curve to shift rightward, indicating an increase in the overall demand within the economy.

Which of the Following Statements Represents a Correct and Sequentially