FIGURE 21-3 -Refer to Figure 21-3.A Shift in the Aggregate Expenditure Function

question 10

Multiple Choice

FIGURE 21-3
-Refer to Figure 21-3.A shift in the aggregate expenditure function downward from AE₁ to AE₀ could be caused by

• A)a rise in the multiplier.
• B)a fall in the marginal propensity to consume.
• C)a rise in the marginal propensity to consume.
• D)an increase in autonomous desired saving.
• E)a decrease in autonomous desired saving.

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Definitions:

Social Roles

The parts individuals play as members of a social group, which come with expected behaviors, responsibilities, and norms.

Zimbardo Experiment

A psychological study conducted by Philip Zimbardo in 1971 to investigate the effects of perceived power, focusing on the struggle between prisoners and prison guards in a simulated environment.

Halo Effect

A cognitive bias where one's overall impression of a person influences how we feel and think about their character.

Attracted

The state or condition of being drawn to or interested in something or someone, often in a romantic or sexual manner.