A Decline in Autonomous Consumer Expenditure Causes the Aggregate Demand

question 23

Multiple Choice

A decline in autonomous consumer expenditure causes the aggregate demand function to shift down, 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

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Definitions:

Bonds

Long-term debt instruments issued by corporations or governments to raise capital, with the issuer promising to pay back the principal along with interest on specified dates.

Annual Interest Payment

the amount of money paid in interest to lenders or bondholders over the course of a year.

Accounting Period

A specific period of time covered by financial statements, usually a fiscal quarter or year.

Journal Entry Grid

A tool used in accounting to visually organize and record the debits and credits of transactions.