In General, an Increase in Autonomous Expenditure That Is NOT

question 11

Multiple Choice

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

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

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Definitions:

Consumption

The act of using goods and services by households or individuals, typically regarded as a primary economic activity.

Production

Production involves the process of creating, manufacturing, or enhancing goods and services.

Consumer Savings

Refers to the amount of money that individuals set aside from their disposable income rather than using it for consumption.

Financial Rewards

Monetary benefits given to employees or stakeholders as an incentive or recognition for their performance or investment.