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

Understand the concept of price elasticity of demand and its effects on revenue and employment.

Grasp the role of supply and demand in determining market equilibrium price and quantity.

Identify how changes in income affect demand for normal, inferior, and luxury goods.

Comprehend the significance of cross elasticity of demand between goods and its implications for substitutability and complementarity.