If the Level of Autonomous Spending in an Economy Increases

question 85

Multiple Choice

If the level of autonomous spending in an economy increases at a given price level,_____.

• A)the aggregate expenditure line shifts upward and the economy moves upward along the aggregate demand curve
• B)the aggregate expenditure line shifts downward and the economy moves upward along the aggregate demand curve
• C)the aggregate expenditure line shifts upward and the aggregate demand curve shifts to the right
• D)the aggregate expenditure line shifts downward and the aggregate demand curve shifts to the left
• E)the aggregate expenditure curve shifts upward and the aggregate demand curve shifts to the left

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Definitions:

Rate of Change

Rate of Change is a measure used in mathematics and economics to represent the speed at which a variable changes over a specific period of time.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events happening in a fixed interval of time or space, assuming events occur with a known constant rate and independently of the time since the last event.

Net Revenue

The total amount of income generated from sales or services after subtracting returns, allowances, and discounts.

Poisson Distribution

A discrete probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, given the average number of times the event occurs over that interval.