An increase in investment and government purchases can be expected to shift the aggregate expenditures curve upwards. Therefore, the option A holds true.
<h3>What is the significance of aggregate expenditures curve?</h3>
An aggregate expenditures curve is a part of the graphical representation that expresses the total change in the expenditures made in an economy during a given period. It is represented on the horizontal axis, and thus when expenses increase, the curve shifts significantly upwards.
Therefore, the option A holds true and states regarding the significance of aggregate expenditures curve.
Learn more about the aggregate expenditures curve here:
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The question seems to be incomplete. The complete question has been added below for better reference.
An increase in investment and government purchases can be expected to shift the aggregate expenditures curve ________.
Upwards
Downwards
Rightwards
None of the above
