In General, an Increase in Autonomous Expenditure That Is NOT

question 199

Multiple Choice

In general, an increase in autonomous expenditure that is NOT created by a change in the price level results in a

• A) movement upward along the AD curve.
• B) leftward shift of the AD curve.
• C) rightward shift of the AD curve.
• D) movement downward along the AD curve.

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Definitions:

Economic Profits

Profits exceeding the total costs of production, including both explicit and implicit costs, representing gains above what could be earned in the next best alternative use of resources.

Pure Monopolist

A market participant who exclusively controls the supply of a particular good or service, without competition or substitute products.

ATC

Average Total Cost, which represents the per-unit cost of production, including both fixed and variable costs.