Exhibit 10-7 -Refer to Exhibit 10-7. If Autonomous Consumption Increases,which of the Consumption

question 53

Multiple Choice

Exhibit 10-7

-Refer to Exhibit 10-7. If autonomous consumption increases,which of the following is possible?

• A) The AD curve will shift rightward from AD₁ to AD₂, the price level will remain constant, and Real GDP will rise.
• B) The AD curve will shift leftward from AD₄ to AD3, the price level will fall, and Real GDP will remain constant.
• C) The AD curve will shift rightward from AD₃ to AD₄, the price level will remain constant, and Real GDP will rise.
• D) The AD curve will shift rightward from AD₁ to AD₂, the price level will rise, and Real GDP will remain constant.

---

Definitions:

Task-Oriented

An approach or behavior focused primarily on completing tasks or achieving specific objectives.

Performance-Oriented

Focused on achieving high levels of performance and often concerned with the outcomes or results of actions rather than the process.

Cohesive

The characteristic of elements of a group sticking together effectively and remaining united in pursuit of common goals.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members.