In the Basic Keynesian Model, a Decline in Autonomous Spending

question 131

Multiple Choice

In the basic Keynesian model, a decline in autonomous spending:

• A)reduces short-run equilibrium output.
• B)increases short-run equilibrium output.
• C)reduces potential output.
• D)increases potential output.

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Definitions:

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, a critical indicator of cardiovascular health.

Carotid Baroreceptors

Sensory nerve endings located in the carotid artery that detect changes in blood pressure and help regulate it.

Glossopharyngeal Nerve

The ninth cranial nerve, responsible for sensory and motor functions in the throat and back of the tongue.

Sympathetic Nerve

The sympathetic nervous system is part of the autonomic nervous system that prepares the body for 'fight or flight' responses during perceived threats.