According to the aggregate expenditures model, a change in _____ would NOT cause a shift in the aggregate expenditures curve.
A) real GDP
B) net wealth
C) business expectations
D) government spending
E) real interest rates

Question

Quizplus · Accepted Answer

The aggregate expenditures curve shifts due to changes in factors like net wealth, business expectations, government spending, and real interest rates, but not due to changes in real GDP itself. Real GDP is a result of where the aggregate expenditures curve intersects the 45-degree line, not a cause of its shift.

According to the Aggregate Expenditures Model, a Change in _____