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An Increase in Autonomous Consumer Expenditure Causes the Equilibrium Level

question 4

Multiple Choice

An increase 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.


Definitions:

Personal Income

The total annual income received by an individual, including wages, dividends, interest, and any other sources of income before taxes.

Purchases

Purchases are transactions where goods or services are bought in exchange for money, contributing to consumer spending and economic activity.

Services

Economic activities that provide intangible products, such as healthcare, entertainment, and financial services, to consumers.

Cottage Industry

A small-scale industry where products are handcrafted in a home-setting, often involving traditional methods.

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