An Increase in Autonomous Consumer Expenditure Causes the Aggregate Demand

question 26

Multiple Choice

An increase in autonomous consumer expenditure causes the aggregate demand function to shift up, 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:

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimulus has ceased.

Short-Term Memory

A cognitive storage system that temporarily holds a limited amount of information for a brief period, typically around 20 seconds.

Working Memory Capacity

The amount of information that can be held in working memory at one time, critical for reasoning and the guidance of decision-making and behavior.

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences, including contextual details of time and place.