In an aggregate expenditures diagram equal increases in government spending and in lump-sum taxes will:
A)shift the aggregate expenditures line downward.
B)shift the aggregate expenditures line upward.
C)not affect the aggregate expenditures line.
D)reduce the equilibrium GDP.

Question

Quizplus · Accepted Answer

The Answer of In an aggregate expenditures diagram equal increases in government spending and in lump-sum taxes will:
A)shift the aggregate expenditures line downward.
B)shift the aggregate expenditures line upward.
C)not affect the aggregate expenditures line.
D)reduce the equilibrium GDP.

In an Aggregate Expenditures Diagram Equal Increases in Government Spending