An Increase in Autonomous Consumer Expenditure Causes the Equilibrium Level

question 4

Multiple Choice

An increase in autonomous consumer expenditure causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________,everything else held constant.

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

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Definitions:

Population Means

The average of a characteristic or measurement of interest for the entire population being studied.

Randomized Block Design

A statistical experimental design that groups similar experimental units into blocks to account for variability and then randomly applies treatments within each block.

Wage Rate

The amount of compensation a worker receives per unit of time or per task completed.

Factor

An element or variable that contributes to a result or outcome.