In general, an increase in autonomous expenditure that is NOT created by a change in the price level results in a

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Quizplus · Accepted Answer

Autonomous expenditure is not affected by changes in the price level, so an increase in autonomous expenditure will shift the AD curve to the right. This is because aggregate demand is made up of consumption, investment, government spending, and net exports, and an increase in autonomous expenditure would mean an increase in one or more of these components, leading to a higher level of aggregate demand at all price levels.

In General, an Increase in Autonomous Expenditure That Is NOT