On the Aggregate Expenditure Graph, Suppose Autonomous Investment Decreases by $10

question 101

Multiple Choice

On the aggregate expenditure graph, suppose autonomous investment decreases by $10 billion.What will be the effect on the aggregate expenditure line?  

• A) The aggregate expenditure line will shift upward by $10 billion. 
• B) The aggregate expenditure line will shift by some multiple. 
• C) The aggregate expenditure line will shift downward by $10 billion. 
• D) The equilibrium level of real GDP demanded will decrease by $10 billion.

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Definitions:

Reaction Formation

A psychological defense mechanism where an individual unconsciously replaces their true feelings with the opposite.

Work Engagement

A positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption.

Cultivate

To develop or improve by education or training; to foster growth in skills, knowledge, or qualities.

Defense Mechanism

Defense Mechanism refers to psychological strategies brought into play by individuals unconsciously to protect themselves from anxiety or to face reality.