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The Shift in the PAE Line Shown in the Keynesian

question 93

Multiple Choice

The shift in the PAE line shown in the Keynesian cross diagram may be caused by which of the following? The shift in the PAE line shown in the Keynesian cross diagram may be caused by which of the following?   A)  A decrease in government purchases. B)  A decrease in government transfers. C)  A decrease in autonomous consumption. D)  A decrease in autonomous private-sector investment. E)  An increase in the marginal propensity to consumE.


Definitions:

Focused Strategy

A business approach where a company targets a specific niche or segment of the market, concentrating its efforts and resources to serve that segment to the exclusion of others.

Vertical (Y) Axis

The axis in a chart or graph that runs vertically (up-and-down) and typically represents the range of values for a given variable.

Horizontal (X) Axis

A line on a graph that typically represents the independent variable in a data chart or plot.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that directly the activities of an organization.

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