Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 125

Multiple Choice

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. The marginal propensity to consume is ⅔. Holding all else constant, if net exports increase by $50 billion, what happens to
Aggregate demand?

• A) It shifts left by $150 billion.
• B) There is a movement down along a given aggregate demand so that aggregate quantity demanded increases by $150 billion.
• C) It shifts right by $150 billion
• D) There is a movement down along a given aggregate demand so that aggregate quantity demanded increases by $50 billion.

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Definitions:

Intersectionality

A framework for understanding how various forms of social stratification, such as race, gender, and class, intersect and impact individuals and groups.

Gender Inequality

The disparity in status, power, and opportunity between individuals based on their gender, manifesting in various areas of social, economic, and political life.

Sociologists

Experts or scientists who study human societies and social behavior by examining the groups, cultures, organizations, social institutions, and processes that develop when people interact and work together.

Single Fathers

Male parents who are raising their children without the presence or involvement of the children's mother, due to various circumstances.