In the Keynesian Model, a Decrease in Real Autonomous Spending

question 199

Multiple Choice

In the Keynesian model, a decrease in real autonomous spending results in a more than proportional decrease in real Gross Domestic Product (GDP) because

• A) consumption decreases as a result of lower real disposable income.
• B) consumption increases while real disposable income decreases.
• C) real autonomous spending decreases further as real disposable income decreases.
• D) government spending also decreases.

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Definitions:

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Learning that occurs by observing the actions and outcomes of others' behavior, without direct personal experience.

Projective Tests

Psychological assessments that use ambiguous stimuli to elicit responses that reveal aspects of an individual's personality.

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Hidden or unresolved tensions and disagreements that can impact behavior and psychological health.

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