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Question 16 1 pts In the aggregate expenditures model of the economy, a downward shift in aggregate expenditures can be cause
Question 18 As disposable income decreases, consumption and saving both increase. and saving both decrease. increases and sav
Question 19 1 pts Other things constant, if domestic consumers purchase fewer foreign goods at each level of GDP, in the shor
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Answer #1

a) "A"

A decrease in the government spending or an increase in the taxes will shift the AE curve downwards and that will reduce the output the economy as well.

b) "B"

As the disposable income decrease the consumption and saving both decrease.

c) "A"

this will increase the GDP as the net exports will increase.

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