Once macroeconomic equilibrium has been established in an economy, there is no tendency for real GDP to change, even if there is a change in autonomous expenditure.

Question

Quizplus · Accepted Answer

A change in autonomous expenditure will cause a shift in the aggregate demand curve, which will result in a new macroeconomic equilibrium. Therefore, real GDP will change in response to changes in autonomous expenditure.

Once Macroeconomic Equilibrium Has Been Established in an Economy, There