In general, an increase in autonomous expenditure that is NOT created by a change in the price level results in a
A)rightward shift of the AD curve.
B)movement downward along the AD curve.
C)movement upward along the AD curve.
D)leftward shift of the AD curve.

Question

Quizplus · Accepted Answer

An increase in autonomous expenditure, such as government spending or investment, increases aggregate demand at every price level, causing a rightward shift of the AD curve.

In General, an Increase in Autonomous Expenditure That Is NOT