An Increase In_________ Shifts the AE Curve_________ and an Increase

question 152

Multiple Choice

An increase in_________ shifts the AE curve_________ and an increase in shifts the aggregate demand curve_________ .

• A) autonomous expenditure; upward; the price level; rightward
• B) the price level; downward; autonomous expenditure; rightward
• C) autonomous expenditure; upward; the price level; leftward
• D) the price level; upward; autonomous expenditure; leftward

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Definitions:

Marginal Physical Product

The additional output that can be produced by adding one more unit of a specific input, holding all other inputs constant.

MRP

Marginal Revenue Product; the additional revenue generated from employing one more unit of input or labor.

Derived Demand

Demand for resources derived from demand for the final product.

Final Demand

The demand for finished products by consumers, businesses, and the government, without any further processing or transformation.