Suppose That a Pair of Graphs Represents a Situation in Which

question 116

Multiple Choice

Suppose that a pair of graphs represents a situation in which the aggregate expenditure line has shifted but the aggregate demand curve has not.The shift of the aggregate expenditure line was caused by a change in

• A)the marginal propensity to consume
• B)the price level
• C)autonomous investment
• D)autonomous saving
• E)disposable income

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Definitions:

Debits

Accounting entries that increase assets or expenses or decrease liabilities, equity, or revenue, recorded on the left side of an account.

Credits

Entries on the right-hand side of an accounting ledger, indicating increases in liability, equity accounts, and revenue, or a decrease in assets.

Debit Side

The left side of a ledger account that is used to record increases in assets, expenses, and decreases in liabilities, equity, and income.

Asset Accounts

Ledger accounts that record a company's owned resources with economic value expected to provide future benefits.