In the simple macroeconomic model,what are "autonomous expenditures"?
A)expenditures that are dependent on national income
B)expenditures that are not dependent on national income
C)induced expenditures
D)expenditures that are constant
E)non-domestic expenditures

Question

Quizplus · Accepted Answer

Autonomous expenditures are those that are not dependent on national income, such as government spending, investment by firms, and exports. These expenditures are considered to be constant in the short run and are not affected by changes in income or output levels. Induced expenditures, on the other hand, are dependent on income and change as income changes, such as consumption expenditures by households.

In the Simple Macroeconomic Model,what Are "Autonomous Expenditures