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:

Rational Advice

Guidance or recommendations based on logical reasoning and factual analysis.

Cultural Differences

The varying beliefs, values, behaviors, and social practices observed among people from different cultural backgrounds.

Enlightened Self-interest

The understanding that one's own best interests are served by considering and acting towards the well-being of others.

Listening Errors

Mistakes made in the process of listening, which can include misunderstanding, misinterpreting, or overlooking important details.