-Refer to Exhibit 10-2.If autonomous consumption increases,the TE curve will shift ____________ and the new level of equilibrium Real GDP will be ___________ than $4,500.
A) downward; greater
B) downward; less
C) upward; less
D) upward; greater

Question

-Refer to Exhibit 10-2.If autonomous consumption increases,the TE curve will shift ____________ and the new level of equilibrium Real GDP will be ___________ than $4,500.
A) downward; greater 
B) downward; less 
C) upward; less 
D) upward; greater

Quizplus · Accepted Answer

An increase in autonomous consumption shifts the Total Expenditure (TE) curve upward, leading to a higher level of equilibrium Real GDP than the initial $4,500.