In the Income-Expenditure Model,if Autonomous Saving Increases by $15 Billion,_____

question 47

Multiple Choice

In the income-expenditure model,if autonomous saving increases by $15 billion,_____.

• A)the aggregate expenditure line shifts upward by $15 billion
• B)planned investment increases by $15 billion
• C)the aggregate expenditure line shifts downward by $15 billion
• D)planned investment decreases by $15 billion
• E)the equilibrium level of real GDP demanded decreases by $15 billion

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Definitions:

Average Total Cost

The total cost of production divided by the number of goods produced, representing the per-unit production cost.

Producing

The process of creating goods or services through the combination of labor, materials, and technology.

Scale

In economics, scale refers to the level at which a business or activity is operating regarding its volume of production or size.

Consumer Equilibrium

A state in which a consumer has allocated their income in a way that maximizes their utility, given their budget constraints.