An Increase in Autonomous Expenditure Shifts the AE Curve

question 14

Multiple Choice

An increase in autonomous expenditure shifts the AE curve

• A)upward but leaves its slope unchanged.
• B)upward and the curve becomes steeper.
• C)downward but leaves its slope unchanged.
• D)downward and the curve becomes steeper.
• E)upward and the curve becomes less steep.

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Definitions:

Fixed Amount

A specific sum of money that does not change or vary under specified conditions.

Gratuitous

Provided without requiring anything in return; given freely or without charge.

Service

The provision of assistance or professional work performed for another person or organization.

Quantum Meruit

A legal principle meaning "as much as he has deserved," used to determine the amount of compensation due for services provided when there is no existing contract.