On the Keynesian Cross Diagram, a Decrease in Which of the Following

question 21

Multiple Choice

On the Keynesian cross diagram, a decrease in which of the following would cause the aggregate demand function to shift up?

• A) autonomous consumption
• B) taxes
• C) investment
• D) none of the above

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Definitions:

Profitability

A financial metric indicating the extent to which a company or business generates more revenue than its costs; the capability to generate profit.

Demand Uncertainty

The unpredictability of customer demand, posing challenges to accurately forecasting and meeting market needs.

Expected Profit

The forecasted gain from an investment or business operation, taking into account the probability of different outcomes.

Souvenirs

Items purchased or acquired during a trip or at an event to serve as a reminder or for personal keepsake.