42. What is happening when the aggregate demand curve moves to the left on the model? Consumers have more disposable income and are spending more money. Consumers are renting more and buying less. Consumers are investing more in the market for money. Consumers have less disposable income and are spending less money.

Locate a news article that describes an event that would cause a shift in the Aggregate Demand (Aggregate Expenditure). Describe if the event would cause an “upward” or “downward” shift in the Aggregate Demand curve and why. Briefly explain how this then fits within the Consumption Function.

Which of the following correctly describes how a decrease in the price level affects consumption spending? Select one: a. A decrease in the price level raises real wealth, which causes consumption to increase. b. A decrease in the price level decreases the amount of money a household needs to buy goods and so raises the interest rate, which causes consumption to increase. c. A decrease in the price level increases the amount of money a household needs to buy goods and so raises the interest rate, which causes consumption to increase. d. A decrease in the price level lowers real wealth, which causes consumption to decrease.

U.S. durable goods orders boosted by aircraft   The Commerce Department reported that orders for durable goods increased 2.1 percent in July. Orders for Boeing aircraft rebounded. ​Source: Financial Times​, August​ 26, 2019   Explain the process by which an increase in durable goods orders at a constant price level changes equilibrium expenditure and real GDP. A planned increase in durable goods is an increase in planned investment. When planned investment​ increases, _______.     A. the economy moves production into investment from consumption​ expenditure, government expenditure on goods and​ services, and exports. Real GDP decreases   B. real GDP cannot change unless the price level also changes   C. real GDP increases by an amount equal to the change in investment. Disposable income decreases to make up for the increase in investment so that the economy returns to its​ long-run equilibrium   D. real GDP initially increases by an amount equal to the change in…