In the Basic Keynesian Model, a Decline in Autonomous Spending

question 131

Multiple Choice

In the basic Keynesian model, a decline in autonomous spending:

• A)reduces short-run equilibrium output.
• B)increases short-run equilibrium output.
• C)reduces potential output.
• D)increases potential output.

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Definitions:

Capitalism

An economic system based on the private ownership of the means of production and the creation of goods or services for profit.

Life Chances

A social science concept that refers to the opportunities each individual has to improve their quality of life, often influenced by social and economic factors.

Educational Opportunities

refer to the accessibility and availability of learning experiences and resources that can improve knowledge, skills, and qualifications.

Working-Class Family

A family where the primary earners are employed in blue-collar jobs or manual labor, often associated with lower income levels.