A Decrease in Autonomous Consumer Expenditure Causes the Equilibrium Level

question 114

Multiple Choice

A decrease 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.

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

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Definitions:

Power

The capacity or ability to direct or influence the behavior of others or the course of events, often held by individuals or groups in social contexts.

Coercive Power

A form of power that is derived through the ability to punish or sanction others when they do not comply with demands or expectations.

Predominantly Immigrant

Refers to communities or areas where the majority of the population consists of immigrants.