When Compared to a Simple Macroeconomic Model (With Only Consumption

question 19

Multiple Choice

When compared to a simple macroeconomic model (with only consumption and investment) ,adding government and foreign trade to the AE function causes

• A)the autonomous component of AE to increase.
• B)the autonomous component of AE to fall.
• C)the AE function to become downward sloping.
• D)the AE function to become perfectly horizontal.
• E)no change in the AE function.

---

Definitions:

Walk

To move at a regular pace by lifting and setting down each foot in turn, never having both feet off the ground at once.

Infants

Young children from birth up to 12 months of age, a period marked by rapid growth and development across physical, cognitive, and socio-emotional domains.

Perceptual Development

The gradual process by which infants and young children gain the ability to interpret and understand sensory information.

Nature

The processes within an organism that guide it to develop according to its genetic code.