Arrange the following statements when autonomous investment increases.

(A) The autonomous expenditure increases.
(B) Aggregate demand and output have a multiplier effect.
(C) Income and output increases.
(D) The aggregate demand curve shifts parallel upward.

Choose the correct answer from the options given below:

(A), (D), (C), (B)

The correct answer is Option (1) → (A), (D), (C), (B)

• (A) The autonomous expenditure increases — because investment is a component of autonomous expenditure.

• (D) The aggregate demand curve shifts parallel upward — higher expenditure increases overall demand at all income levels.

• (C) Income and output increase — producers respond to higher demand by increasing production.

• (B) Aggregate demand and output have a multiplier effect — the initial rise in expenditure leads to further rounds of spending, amplifying the total increase in income and output.