Suppose the Level of Autonomous Spending Decreases at a Given

question 20

Multiple Choice

Suppose the level of autonomous spending decreases at a given price level.How does this relate to the aggregate expenditure line and the aggregate demand curve?  

• A) The aggregate expenditure line shifts upward, and the economy moves along the aggregate demand curve. 
• B) The aggregate expenditure line shifts downward, and the economy moves along the aggregate demand curve. 
• C) The aggregate expenditure line shifts upward, and the aggregate demand curve shifts to the right. 
• D) The aggregate expenditure line shifts downward, and the aggregate demand curve shifts to the left.

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Definitions:

Robert Mugabe

A Zimbabwean revolutionary and politician who served as Prime Minister from 1980 to 1987 and then as President from 1987 to 2017.

Henry Ford

An American industrialist and founder of the Ford Motor Company, who revolutionized factory production with his assembly-line methods.

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A French agricultural engineer who discovered the Ringelmann effect, noting that individual productivity decreases as the size of a group increases.

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Characterized by confident and forceful behavior or attitudes, especially in stating one's opinions or claiming one's rights.