A Decrease in Autonomous Consumer Expenditure Causes the Equilibrium Level

question 114

Multiple Choice

A decrease in autonomous consumer expenditure causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________,everything else held constant.

• A)rise;LM;right
• B)rise;IS;right
• C)fall;IS;left
• D)fall;LM;left

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Definitions:

Happiness

A state of well-being and contentment, often associated with feelings of joy or fulfillment.

Evolutionary Theories

A set of principles aimed at explaining how evolutionary processes, such as natural selection, have shaped behaviors, physical traits, and psychological traits over time.

Innate Emotions

Fundamental emotions that are believed to be hardwired into the human psyche, present from birth.

Subcortical Structures

Parts of the brain located below the cerebral cortex, involved in various functions including regulating emotions, memory, and basic survival instincts.