If society wants aggregate demand to increase without changes in the price level,then there must be
A) a gap between full employment and the current level of real national income and an increase in autonomous spending.
B) an increase in autonomous spending combined with an increase in the marginal propensity to save.
C) an increase in autonomous saving so that autonomous investment spending can increase.
D) an increase in autonomous spending and a horizontal short-run aggregate supply curve.
Correct Answer:
Verified
Q105: Define the difference between the MPC and
Q106: An increase in investment spending causes
A)a movement
Q107: What are the simplifying assumptions that are
Q109: What effect does a higher aggregate price
Q111: When disposal income is $50 million,consumption expenditure
Q113: In your own words,explain the multiplier process
Q114: Explain why and increase (or decrease)in government
Q115: If the aggregate supply curve is upward
Q253: Suppose the marginal propensity to consume is
Q447: What is the multiplier? How is it
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents