Which of the following quotations illustrates an increase in aggregate expenditure?
A)"The new stadium will generate $200 million in spin off spending."
B)"Higher expected profits are leading to higher investment spending by business, and will lead to higher consumer spending."
C)"The projected cuts in government jobs will hurt the local retail industry."
D)"Taking the grain elevator out of our small town will destroy 300 jobs."
E)Both A and B

Question

Quizplus · Accepted Answer

Option A talks about an increase in spending due to the construction of a new stadium, while Option B talks about an increase in spending due to higher expected profits leading to higher investment and consumer spending. Therefore, both options A and B illustrate an increase in aggregate expenditure. Option C talks about projected cuts in government jobs, which will lead to a decrease in spending, and Option D talks about job loss due to the removal of a grain elevator, which may lead to a decrease in spending as well.

Which of the Following Quotations Illustrates an Increase in Aggregate