If autonomous consumption decreases,then
A)The AD curve will shift to the right.
B)The AD curve will shift to the left.
C)There will be a movement to the left along the AD curve.
D)The AD curve will not be affected.

Question

Quizplus · Accepted Answer

Autonomous consumption refers to consumption that is not influenced by changes in income. If autonomous consumption decreases, it means that consumers are spending less even when their income remains the same. This will shift the AD curve to the left, as there will be fewer goods and services demanded at any given price level.

If Autonomous Consumption Decreases,then