An Increase in Autonomous Consumer Expenditure Causes the Equilibrium Level

question 108

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; MP; right
• B) rise; IS; right
• C) fall; MP; left
• D) fall; IS; left

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Definitions:

Tiling Grout

A dense fluid which is used to fill gaps or used as reinforcement in existing structures between tiles during installation.

Contribution Margin Ratio

The proportion of revenue from each dollar of sales that goes towards covering fixed expenses and creating profit.

Unit Sales

Unit sales measure the total number of individual items or products sold over a particular period.

Target Profit

The desired net income a company aims to achieve for a specific period.