Which of the following quotations illustrates a decrease 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 C and D

Question

Quizplus · Accepted Answer

Option C suggests that cuts in government jobs will lead to a decrease in the income of individuals working in the retail industry, which will result in a decrease in their spending. Option D suggests that the removal of the grain elevator from the small town will lead to the loss of jobs and income for individuals, which will result in a decrease in their spending. Therefore, both C and D illustrate a decrease in aggregate expenditure.

Which of the Following Quotations Illustrates a Decrease in Aggregate