A Decrease in Autonomous Investment Will

question 142

Multiple Choice

A decrease in autonomous investment will

• A)shift the aggregate expenditure line upward
• B)shift the aggregate expenditure line downward
• C)result in an upward movement along the aggregate expenditure line
• D)result in a downward movement along the aggregate expenditure line
• E)decrease aggregate expenditures only at low levels of income

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Definitions:

Primary Causes

Fundamental reasons or root causes that directly lead to an event, situation, or outcome, distinct from secondary or tertiary factors.

Remedy

Refers to a treatment, solution, or means of correcting or improving a problem, situation, or condition.

Bullwhip Measure

A metric used to quantify the increase in fluctuation at higher tiers of a supply chain caused by small changes in demand at the consumer end.

Bullwhip Effect

A phenomenon in supply chains where minor fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesaler, manufacturer, and supplier levels.