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If autonomous imports​ increase, then the aggregate expenditure curve shifts​ ________ and equilibrium real GDP​ ________.

1 Answer

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Answer:

If autonomous imports​ increase, then the aggregate expenditure curve shifts downward​ and equilibrium real GDP decreases

Step-by-step explanation:

When the autonomous imports takes place there will be more demand for the foreign good over the domestic goods. This is a fall in the demand for the domestic goods and this will result in lower production in the economy and also result a fall in the employment. So the ultimate result is the reduction of the aggregate demand in the economy.

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