Let AE = Aggregate Expenditures, C = Consumption, I_P =

question 62

Multiple Choice

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment,
G = Government Purchases. Consider a simple aggregate expenditures model, where
AE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous. All other things unchanged, a decrease in the price level

• A) shifts the aggregate expenditures curve upwards.
• B) shifts the aggregate expenditures curve downwards.
• C) causes a movement up along a given aggregate expenditures curve.
• D) causes a movement down along a given aggregate expenditures curve.

---

Definitions:

Locus of Control

The degree to which individuals believe they have control over the outcome of events in their lives, as opposed to external forces.

Self-Report Inventories

Psychological assessment tools in which individuals provide subjective reports about their own thoughts, feelings, and behaviors.

College Students

Individuals enrolled in institutions of higher education pursuing various degrees and courses of study.

Internal

Relating to or situated on the inside; pertaining to the inner characteristics or features of something.