Decreases in Autonomous Spending Cause Rightward Shifts of the Aggregate

question 43

True/False

Decreases in autonomous spending cause rightward shifts of the aggregate demand and supply curves.

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Definitions:

Consumer Surplus

The bifurcation between what a consumer wishes to pay for a service or good, and what ends up being spent.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual market price of the good.

Deadweight Loss

Deadweight loss refers to the loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable, often due to market distortion such as taxes or subsidies.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.