An Increase in Autonomous Consumption ________

question 39

Multiple Choice

An increase in autonomous consumption ________.

• A)lowers planned expenditures
• B)raises equilibrium output for any level of the interest rate
• C)causes a movement down along the IS curve
• D)all of the above
• E)none of the above

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Definitions:

Adjusting Journal Entry

An accounting record posted at the conclusion of a fiscal period with the purpose of assigning revenues and expenses to their correct time frame.

Season Tickets

Tickets sold for a set number of events or performances, typically for concerts, theater performances, or sports events.

Unearned Service Revenue

Income received by a company for services yet to be performed or delivered; it is recognized as a liability until the service is provided.

Adjusting Entry

An accounting entry made in the general ledger at the end of an accounting period to update accounts so they reflect the accrual basis of accounting.