Consider a Simple Macro-Model with Demand-Determined Output

question 14

Multiple Choice

Consider a simple macro-model with demand-determined output.An exogenous increase in the domestic price level will ________ the real value of the private sector's wealth,which leads to ________ in autonomous consumption and thus ________ shift in the AE function.

• A)increase; a decrease; a downward
• B)increase; an increase; a downward
• C)increase; an increase; an upward
• D)reduce; a decrease; a downward
• E)reduce; an increase; an upward

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Definitions:

Modeling Desirable Behavior

Demonstrating behaviors that are positive or beneficial, encouraging others to emulate these actions.

Social Skills

The abilities necessary for effective interpersonal behavior and communication.

Etiquette

The customary code of polite behavior in society or among members of a particular profession or group.

Invisible

Anything that cannot be seen or perceived visually, often due to being intangible or hidden.