In General, an Increase in Autonomous Expenditure That Is NOT

question 222

Multiple Choice

In general, an increase in autonomous expenditure that is NOT created by a change in the price level results in a

• A) rightward shift of the AD curve.
• B) movement upward along the AD curve.
• C) movement downward along the AD curve.
• D) leftward shift of the AD curve.

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Definitions:

Supply Shifts

Changes in the availability of a product or service in the market, influenced by factors like production costs and technological advancements.

Quantity Demanded

The combined sum of a good or service that purchasers can and are eager to acquire at an established price level.

Government Intervention

Actions taken by a government to affect the economy, which can include policies, regulations, subsidies, tax incentives, and direct spending.

Market Equilibrium

A situation where the quantity of goods supplied is equal to the quantity of goods demanded, often resulting in a stable market price.