A Decline in Autonomous Consumer Expenditure Causes the Aggregate Demand

question 86

Multiple Choice

A decline in autonomous consumer expenditure causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to fall, and the IS curve to shift to the ________, everything else held constant.

• A) up; left
• B) up; right
• C) down; left
• D) down; right

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Definitions:

Shares of Stock

Units of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.

Amalgamation

The process of combining two or more companies into a single entity, often to achieve operational efficiencies or strategic objectives.

Merger

The merging of two or more corporations into a single entity, where one company is entirely taken over by another.

Acquisition

The process by which one company purchases most or all of another company's shares to take control.