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.

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Definitions:

Rust Belt

A region in the northeastern and midwestern US characterized by declining industry, aging factories, and a decreasing population, historically known for its steel production and heavy manufacturing.

Federal Budget Deficit

The deficit occurring when government spending surpasses income within a specific budget year.

Unemployment Rates

The measure of the unemployed in the labor force who are seeking job opportunities.

Economic Downturn

A period of poor economic performance across a country or region, often characterized by a decline in GDP, employment, and trade.