According to the Aggregate Expenditure Model, When Autonomous Expenditure Increases

question 36

Multiple Choice

According to the aggregate expenditure model, when autonomous expenditure increases, equilibrium expenditure

• A)increases by a smaller amount.
• B)does not change because autonomous expenditures has no effect on equilibrium expenditure.
• C)increases by a larger amount.
• D)increases by an equal amount.
• E)does not change because only induced expenditures increase equilibrium expenditure.

---

Definitions:

Parasympathetic Division

Part of the autonomic nervous system responsible for conserving energy and restoring the body to a state of calm after periods of stress or danger.

Preganglionic Neurons

Neurons of the autonomic nervous system that extend from the central nervous system to the autonomic ganglia.

Parasympathetic Division

Part of the autonomic nervous system responsible for rest and digestion functions, decreasing heart rate, and increasing intestinal activity.

Preganglionic Neurons

are neurons originating in the central nervous system that extend to autonomic ganglia, communicating signals to postganglionic neurons outside the central nervous system.