After an Increase in Autonomous Spending, in the Long Run

question 411

Multiple Choice

After an increase in autonomous spending, in the long run changes in the price level

• A) will make the AE curve steeper.
• B) will make the AE curve flatter.
• C) will reduce the effect of the multiplier.
• D) will not affect the multiplier.

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Definitions:

Reinterpret

To consider or represent something in a new or different way.

Analogical Representation

A form of cognitive representation where one idea, situation, or aspect is understood in terms of its similarity to another.

Satellite Weather Map

A graphical representation of meteorological data collected from satellites, showing weather patterns and conditions over large geographic areas.

Directed Thinking

Focused, goal-oriented thought processes that aim to solve specific problems.