If government purchases increase, what is the likely impact on the aggregate expenditures line and macroeconomic equilibrium?

• A. The aggregate expenditures line shifts downward, potentially decreasing GDP at equilibrium.
• B. The slope of the aggregate expenditures line increases.
• C. The aggregate expenditures line remains unchanged.
• D. The aggregate expenditures line shifts upward, potentially increasing GDP at equilibrium.

Answer: (D)