Consider the Following Information Describing a Closed Economy with No

question 45

Multiple Choice

Consider the following information describing a closed economy with no government and where aggregate output is demand determined.All dollar figures are in billions. TABLE 21-3
-Refer to Table 21-3.Suppose this economy is in equilibrium.There is then a significant decline in house prices across the country.The likely effect is

• A)autonomous consumption will rise above $300 billion and equilibrium national income will therefore rise.
• B)autonomous saving will fall and equilibrium national income will therefore fall.
• C)autonomous saving will rise and equilibrium national income will therefore rise.
• D)autonomous investment will rise and equilibrium national income will therefore rise.
• E)autonomous consumption will fall below $300 billion and equilibrium national income will therefore fall.

---

Definitions:

Specialized Skills

Particular abilities or expertise developed to perform specific tasks or functions proficiently, often requiring focused training or experience.

Aspect

A particular part or feature of something, or a way in which something can be viewed or considered.

Significant Brain Loss

Refers to substantial reduction in brain volume or the loss of neurons, which may result from aging, neurological diseases, or other factors.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, usually measured in terms of systolic and diastolic pressure.