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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 34
Use the following news clip to work Problem.
Consumer Sentiment in U.S. Rose to Three-Month High
Consumer sentiment was up in August helped by merchant discounts, especially from auto dealerships who received incentives from automakers Honda, General Motors, and Toyota to lower prices.
But consumers are worried about the future. They are worried about tax changes and government budget cuts that are on the horizon. Capital spending fell somewhat.
Which of the expenditures listed in the news clip are part of induced expenditure and which is part of autonomous expenditure?
Consumer Sentiment in U.S. Rose to Three-Month High
Consumer sentiment was up in August helped by merchant discounts, especially from auto dealerships who received incentives from automakers Honda, General Motors, and Toyota to lower prices.
But consumers are worried about the future. They are worried about tax changes and government budget cuts that are on the horizon. Capital spending fell somewhat.
Which of the expenditures listed in the news clip are part of induced expenditure and which is part of autonomous expenditure?
Explanation
Verified
Verified
Autonomous and induced expenditure:
Aut...
Macroeconomics 11th Edition by Michael Parkin
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