Assume That Autonomous Expenditures in an Economy Decreased by $10

question 45

Multiple Choice

Assume that autonomous expenditures in an economy decreased by $10 billion. What is the change in aggregate demand at a given price level if the MPC is 0.5?

• A)​increase by $50 billion
• B)​increase by $10 billion
• C)​decrease by $20 billion
• D)​decrease by $10 billion

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Definitions:

Role Construct Repertory

A psychological tool used to help individuals identify how they construe significant persons in their lives, revealing their personal construct systems.

Validity

The degree to which an idea, conclusion, or measurement is grounded in reality and probably reflects the actual state of affairs accurately.

Repertory Grid

A technique used in personal construct psychology to explore the ways in which individuals construe their experiences and people in their lives.

Constructs

Abstract concepts developed or constructed to understand or interpret the world.