What factors will shift the aggregate expenditure function for a given

What factors will shift the aggregate expenditure function for a given level of real domestic income?

What will be an ideal response?

ANSWER

Any factors embedded in the autonomous spending components from the different sectors. Increases in personal taxes, real interest rate, consumer debt, business taxes, and the currency exchange rate will decrease aggregate autonomous expenditures whereas increases in consumer confidence, consumer wealth, expected profits, capacity utilization, government spending, and level of foreign real income will increase aggregate autonomous expenditures.