Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 50

Multiple Choice

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. Which of the following events causes the aggregate expenditures curve to shift downwards?

• A) Firms become optimistic about future profits and increase investment spending.
• B) The government reduces property tax rates.
• C) The government cuts spending on education.
• D) Households save a greater portion of any change in disposable income.

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Definitions:

Alberta Health Authority

The organization responsible for overseeing and providing health services in the province of Alberta, Canada.

Individual Behaviour

The actions, reactions, and interactions of an individual, often studied in psychology to understand how and why people behave the way they do.

Determinants of Health

Various factors that influence an individual's health status, including social, economic, and physical environments, as well as the person's individual characteristics and behaviors.

Negative Health

A condition characterized by the decline or impairment of an individual’s physical, mental, or social well-being.