what-is-the-effect-on-macroeconomic-equilibrium-if-consumption-decreases-due-to-

Question

What is the effect on macroeconomic equilibrium if consumption decreases due to a rise in savings?

Accepted Answer

The aggregate expenditures line shifts downward, potentially decreasing GDP at equilibrium.

Answer

The slope of the aggregate expenditures line increases.

Answer

The aggregate expenditures line shifts upward, potentially increasing GDP at equilibrium.

Answer

The aggregate expenditures line remains unchanged.