In the Basic Keynesian Model,an Increase in Autonomous Spending

question 131

Multiple Choice

In the basic Keynesian model,an increase in autonomous spending

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

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Definitions:

Evolutionary Psychology

A branch of psychology focusing on the role of evolutionary processes in shaping human behavior and mental processes.

Hypothalamus

A region of the brain below the thalamus; it coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Endocrine System

A collection of glands in the body that secrete hormones directly into the circulatory system to regulate various body functions.

Pituitary

A small gland located at the base of the brain that produces hormones influencing various bodily functions, including growth and metabolism.