If the Aggregate Supply Curve Is Upward Sloping, Then an Increase

question 76

Multiple Choice

If the aggregate supply curve is upward sloping, then an increase in autonomous consumption leads to a(n)

• A) increase in aggregate demand and a rise in the price level.
• B) decrease in aggregate demand and a rise in the price level.
• C) decrease in aggregate demand and a fall in the price level.
• D) no change in aggregate demand and no change in the price level.

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Definitions:

Papayas

No real economic definition; presumably referring to the tropical fruit as a commodity in the context of trade, agriculture, or market pricing.

Grapefruit

A large, tart citrus fruit with a segmented, juicy interior, often eaten for breakfast or used in culinary recipes.

Equilibrium Price

The price point in the market where the amount of goods being offered is the same as the amount of goods being sought by consumers.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price.