If Autonomous Consumption Decreases,which of the Following Would Occur in the Short

question 25

Multiple Choice

If autonomous consumption decreases,which of the following would occur in the short run?

• A) a decrease in GDP,a decrease in the price level,a decrease in money demand and a decrease in the interest rate.
• B) an increase in GDP,an increase in the price level,an increase in money demand and an increase in the interest rate.
• C) a decrease in GDP,an increase in the price level,an increase in money demand and an increase in the interest rate.
• D) an increase in GDP,a decrease in the price level,a decrease in money demand and an increase in the interest rate.
• E) a decrease in GDP,a decrease in the price level,an increase in money demand and an increase in the interest rate.

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Definitions:

Exhaustion

A state of extreme physical or mental fatigue, often resulting from stress or extended periods of exertion.

Alarm Reaction

The initial phase in the body's response to stress, mobilizing resources to face the threat or challenge.

Tend-And-Befriend

A behavior exhibited by some animals, including humans, as a stress response, where individuals seek social affiliation and nurturing activities to reduce stress.

General Adaptation Syndrome

A three-phase response (alarm, resistance, exhaustion) of the body to stress, identified by Hans Selye.