Within the Keynesian Aggregate Expenditures Model, Which of the Following

question 32

Multiple Choice

Within the Keynesian aggregate expenditures model, which of the following autonomous changes would decrease the equilibrium output?

• A) A decrease in investment spending.
• B) An increase in net exports.
• C) An increase in government spending.
• D) An increase in consumption expenditures

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Uncollectable Account

A debt or receivable that is considered to be uncollectible from a debtor, often because it is overdue or the debtor is unable to pay.

Collection Agency

An enterprise that seeks to collect payments from individuals or businesses on outstanding debts.

Pegboard System

A bookkeeping system that uses a lightweight board with pegs on which forms can be stacked, allowing each transaction to be entered and recorded on four different bookkeeping forms at once; also called the one-write system.