How does a decrease in government spending affect the aggregate expenditure line?
A) It increases the slope of the aggregate expenditure line.
B) It shifts the aggregate expenditure line downward.
C) It decreases the slope of the aggregate expenditure line.
D) It shifts the aggregate expenditure line upward.
B
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10% of the total food grains produced in a country during a year got damaged due to poor storage. Which of the following will happen in this case?
A) Imports will fall. B) Trade surplus will increase. C) GDP will remain unchanged. D) GDP will decrease.
In the importing country, the most likely effect of a tariff on a good is to:
A) raise the price and decrease the quantity demanded. B) raise the price and increase the quantity demanded. C) raise the price without affecting the quantity demanded. D) decrease the quantity supplied.