An Increase in Autonomous Consumer Expenditure Causes the Aggregate Demand

question 26

Multiple Choice

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

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Definitions:

Flat Fee

A pricing structure where a single fixed charge is applied for a service, regardless of usage or time expended.

Opportunity Cost

The fiscal consequence of excluding the next most beneficial alternative from consideration during decision-making.

DVDs

Digital Versatile Discs, a type of optical storage media used for storing video, audio, and data in digital format.

Books

Published works consisting of written, printed, or blank pages fastened together and bound in covers.