How does an increase in government spending affect the aggregate expenditure line? It shifts the aggregate expenditure line upward. It shifts the aggregate expenditure line downward. It increases the slope of the aggregate expenditure line. It decreases the slope of the aggregate expenditure line.
How does an increase in government spending affect the aggregate expenditure line? It shifts the aggregate expenditure line upward. It shifts the aggregate expenditure line downward. It increases the slope of the aggregate expenditure line. It decreases the slope of the aggregate expenditure line.
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 8SQ
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How does an increase in government spending affect the aggregate expenditure line?
It shifts the aggregate expenditure line upward.
It shifts the aggregate expenditure line downward.
It increases the slope of the aggregate expenditure line.
It decreases the slope of the aggregate expenditure line.
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