Question: ( G ) on goods and services: An increase in aggregate expenditure increases aggregate demand ( AD ) , which increases real GDP , which
on goods and services:
An increase in aggregate expenditure increases aggregate demand AD which increases real GDP which induces an increase in consumption expenditure C and which further increases aggregate demand AD
An increase in aggregate expenditure increases aggregate supply AS which increases real GDP which induces an increase in consumption expenditure C and which further increases aggregate supply AS
An increase in aggregate expenditure decreases aggregate demand AD which decreases real GDP which induces an decrease in consumption expenditure C and which further decreases aggregate demand AD
An increase in aggregate expenditure decreases aggregate supply AS which decreases real GDP which induces an decrease in consumption expenditure C and which further decreases aggregate supply AS
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