In the Keynesian Cross Diagram,a Decline in Autonomous Consumer Expenditure

question 15

Multiple Choice

In the Keynesian cross diagram,a decline in autonomous consumer expenditure causes the aggregate demand function to shift ________,the equilibrium level of aggregate output to fall,and the IS curve to shift to the ________,everything else held constant.

• A)up;left
• B)up;right
• C)down;left
• D)down;right

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Definitions:

Affiliation Motive

An individual's need to form connections with others, feeling a desire for close relationships as part of their social instinct.

Approval

A formal or official agreement or sanction.

Reproductive Success

The passing of genes to the next generation in a way that they too can pass on those genes.

Internal State

Refers to an individual's psychological and physiological condition at a given time, which influences perceptions, emotions, and behavior.