In the Keynesian Model, a Decrease in Real Autonomous Spending

question 199

Multiple Choice

In the Keynesian model, a decrease in real autonomous spending results in a more than proportional decrease in real Gross Domestic Product (GDP) because

• A) consumption decreases as a result of lower real disposable income.
• B) consumption increases while real disposable income decreases.
• C) real autonomous spending decreases further as real disposable income decreases.
• D) government spending also decreases.

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Definitions:

International Ban

A prohibition or restriction placed by international bodies or agreements on specific activities, goods, or countries, typically to enforce international law or policy.

Escaping To Freedom

Often refers to the act of enslaved individuals fleeing from bondage to attain freedom, especially during the era of slavery in the United States.

Maryland

A state located in the Mid-Atlantic region of the United States, known for its significant historical sites and as the birthplace of the national anthem.

Alabama

A state located in the southeastern region of the United States, known for its significant role in the American Civil Rights Movement.