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 the consumption that occurs regardless of income level. If autonomous consumption decreases, this means that consumers are likely to spend less at all levels of income. As a result, the aggregate demand (AD) curve will shift to the left, indicating a decrease in overall demand at each price level.

If Autonomous Consumption Decreases,then