Qualitatively,an increase in government purchases has the same impact as an increase in autonomous ________.
A)consumption
B)investment
C)net exports
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

An increase in government purchases, like increases in autonomous consumption, investment, or net exports, stimulates aggregate demand in the economy. All these components are part of the aggregate expenditure, and an increase in any of them has a similar effect of raising the overall demand, leading to economic expansion.

Qualitatively,an Increase in Government Purchases Has the Same Impact as an Increase