Question
In the aggregate expenditures model, an increase in government spending causes a(n):
upward shift in the aggregate expenditures curve.
downward shift in the aggregate expenditures curve.
shift in the 45-degree line.
rightward movement along the aggregate expenditures curve.
leftward movement along the aggregate expenditures curve.
upward shift in the aggregate expenditures curve.
downward shift in the aggregate expenditures curve.
shift in the 45-degree line.
rightward movement along the aggregate expenditures curve.
leftward movement along the aggregate expenditures curve.
Answers
GPT-5 mini
upward shift in the aggregate expenditures curve.
Explanation: Government spending is an autonomous component of planned expenditure; an increase raises planned spending at every income level, shifting the AE curve upward (then output rises via the multiplier).
Explanation: Government spending is an autonomous component of planned expenditure; an increase raises planned spending at every income level, shifting the AE curve upward (then output rises via the multiplier).