When autonomous expenditure changes, the horizontal distance by which the aggregate demand curve shifts
A) is determined by the inverse of the multiplier.
B) depends on the size of the wealth effect.
C) depends on the size of the multiplier.
D) is increased by the existence of automatic stabilisers.
Correct Answer:
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Q34: In the short run, a factor that
Q35: The graph of the consumption function has
Q36: Q37: Because of changes in the _, the Q38: Equilibrium expenditure occurs where the aggregate expenditure Q40: When the economy is at full employment Q41: Disposable income is equal to Q42: The marginal propensity to import reflects the Q43: The slope of the AE curve is Q44: An increase in _ shifts the AE
A)aggregate income minus
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