Aggregate planned expenditure decreases if
A) exports increase.
B) government expenditure on goods and services increases.
C) autonomous consumption increases.
D) real GDP decreases.
E) investment increases.
Question 2
Both the demand for and supply of cars changes in France. You observe that the quantity of cars does not change but the price rises. Thus, which of the following occurred?
A) Demand increased and supply decreased by an equal amount.
B) Demand and supply increased by an equal amount.
C) Demand and supply decreased by an equal amount.
D) Demand increased by a larger magnitude than supply decreased.
E) Demand decreased and supply increased by an equal amount.