A Decline in Autonomous Consumer Expenditure Causes the Aggregate Demand

question 23

Multiple Choice

A decline in autonomous consumer expenditure causes the aggregate demand function to shift down, the equilibrium level of aggregate output to ________, and the IS curve to shift to the ________, everything else held constant.

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

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Definitions:

Oxygen

A chemical element with symbol O and atomic number 8, essential for most life forms on Earth as a component of water and air.

Fluorine

A chemical element with symbol F and atomic number 9, known for being the lightest halogen and having extremely reactive and electronegative properties.

Magnesium

A lightweight, silvery-white, highly reactive metal used in alloys, fireworks, and as a reducing agent in the production of uranium and other metals.

Chlorine

A greenish-yellow, diatomic gas that is a member of the halogen group, highly reactive and used as a disinfectant and in the production of numerous chemicals.