696 #
© 2014 Pearson Canada Inc.#
An increase in autonomous consumer expenditure causes the aggregate demand function to
shift ____, the equilibrium level of aggregate output to rise, and the IS curve to shift to the
____, everything else held constant.
A) up; left
B) up; right
C) down; left
D) down; right
Answer: B
Diff: 2 Type: MC Page Ref: 553
Skill: Recall
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output
A decline in autonomous consumer expenditure causes the aggregate demand function to shift
____, the equilibrium level of aggregate output to fall, and the IS curve to shift to the
____, everything else held constant.
A) up; left
B) up; right
C) down; left
D) down; right
Answer: C
Diff: 2 Type: MC Page Ref: 553
Skill: Recall
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output
A decline in autonomous consumer expenditure causes the aggregate demand function to shift
down, the equilibrium level of aggregate output to ____, and the IS curve to shift to the
____, everything else held constant.
A) rise; left
B) rise; right
C) fall; left
D) fall; right
Answer: C
Diff: 2 Type: MC Page Ref: 553
Skill: Recall
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output
An increase in autonomous consumer expenditure causes the aggregate demand function to
shift up, the equilibrium level of aggregate output to ____, and the IS curve to shift to the
____, everything else held constant.
A) rise; left
B) rise; right
C) fall; left
D) fall; right
Answer: B
Diff: 2 Type: MC Page Ref: 553
Skill: Recall
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output