In the Simple Aggregate Expenditure Model Where All Components of Aggregate

question 37

Multiple Choice

In the simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption, the size of the multiplier depends on the

• A) 45-degree line.
• B) height of the consumption function.
• C) slope of the aggregate demand curve.
• D) slope of the aggregate expenditures curve.

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Definitions:

Theory of Planned Behavior

The theory of planned behavior is a psychological theory that links one's beliefs and attitudes towards a behavior, the subjective norms surrounding it, and perceived control over the behavior to their intentions and actual performance of the behavior.

Positive Attitudes

A mental stance that involves looking at the good side of situations, expecting positive outcomes, and maintaining a hopeful outlook.

Specific Intentions

Explicit, defined goals that an individual sets out to achieve, often detailed and focused.

Theory of Reasoned Action

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering attitudes toward the behavior and subjective norms.