An Increase in Autonomous Aggregate Expenditures

question 71

Multiple Choice

An increase in autonomous aggregate expenditures

• A) causes a movement along the aggregate expenditures curve.
• B) causes a movement along the aggregate demand curve.
• C) increases the value of the multiplier.
• D) shifts the aggregate demand curve to the right.

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Definitions:

Double-Declining-Balance Method

A method of accelerated depreciation that doubles the straight-line depreciation rate, leading to higher depreciation expenses in the initial years of asset use.

Straight-Line Method

A method of allocating the cost of a tangible asset over its useful life in equal periodic amounts.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, making it the simplest form of depreciation.

Residual Value

The projected worth of an asset upon reaching the conclusion of its operational lifespan.