A change in autonomous consumption causes a movement along the aggregate expenditure line,while a change in consumption that depends on income causes a shift of the aggregate expenditure line.

Question

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A change in autonomous consumption (i.e. consumption that is independent of income) will cause a shift in the aggregate expenditure line, while a change in consumption that depends on income (i.e. marginal propensity to consume) will cause a movement along the aggregate expenditure line.

A Change in Autonomous Consumption Causes a Movement Along the Aggregate