In the Aggregate Expenditures Model, a Change in Autonomous Spending

question 93

Multiple Choice

In the aggregate expenditures model, a change in autonomous spending has _____ impact on output and income in the economy.

• A) no
• B) an equal-sized and direct
• C) a multiplied
• D) an equal-sized and opposite

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Definitions:

Subsistence groups

Communities or social groups that rely on natural resources and their immediate environment for their food, shelter, and clothing, often through hunting, gathering, fishing, or subsistence agriculture.

Distribution

The way in which something is shared out among a group or spread over an area.

Consumption

The process by which goods and services are utilized by individuals or groups to satisfy personal or collective needs or desires.

Production

The process of creating, manufacturing, or producing goods, services, or information, often involving a combination of labor, materials, and capital.