In the Keynesian Cross Diagram,an Increase in Autonomous Consumer Expenditure

question 103

Multiple Choice

In the Keynesian cross diagram,an increase in autonomous consumer expenditure causes the aggregate demand function to shift up,the equilibrium level of aggregate output to ________,and the IS curve to shift to the ________,everything else held constant.

• A)rise;left
• B)rise;right
• C)fall;left
• D)fall;right

Explain the trade-offs faced by individuals and societies.

Define and distinguish between different economic terminologies and their applications.

Discuss the role of government intervention in correcting market failures.

Understand the difference between a centrally planned economy and a market economy.

---

Definitions:

Price

The price one must pay to obtain a good, service, or asset.

Claret

A term often used in Britain to refer to red Bordeaux wine.

Utility Function

A representation of how individual preferences are ranked for different bundles of goods.

Income

The financial gain earned or received by an individual, household, or entity, typically measured on a monthly or yearly basis through wages, dividends, or other earnings.