If the Level of Autonomous Spending Decreases at a Given

question 52

Multiple Choice

If the level of autonomous spending decreases at a given price level,

• A)the aggregate expenditure line shifts upward; the economy moves along the aggregate demand curve
• B)the aggregate expenditure line shifts downward; the economy moves along the aggregate demand curve
• C)the aggregate expenditure line shifts upward; the aggregate demand curve shifts to the right
• D)the aggregate expenditure line shifts downward; the aggregate demand curve shifts to the left
• E)the aggregate expenditure curve shifts downward; the aggregate demand curve shifts to the right

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Definitions:

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a country's gross domestic product.

Imports

Items or services acquired from overseas to be sold within a country.

Balanced Trade

A situation in which the value of a country's exports equals the value of its imports over a certain period.

Net Exports

The value of a country's exports minus its imports; a positive number indicates a trade surplus, while a negative one indicates a trade deficit.