A Change in Which of the Following Changes the Slope

question 448

Multiple Choice

A change in which of the following changes the slope of the aggregate expenditure curve?

• A) an increase in autonomous government expenditures
• B) an increase in the marginal propensity to consume
• C) a decrease in autonomous consumption expenditures
• D) All of the above answers are correct because they all change the slope of the aggregate expenditure curve.

---

Definitions:

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, indicating surplus beyond the normal profit level.

Demand Curves

Graphical representations that show the relationship between the price of a good or service and the quantity demanded by consumers.

Industry Entry

The process by which new competitors join an industry, often bringing innovation or increased competition.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is produced up to the point where the last unit provides a benefit to consumers exactly equal to the cost of producing it.