When autonomous expenditure decreases, .
A) the AE curve shifts downward
B) there is a movement down along the AE curve
C) the AE curve shifts upward
D) the AE curve becomes less steep

Question

Quizplus · Accepted Answer

Autonomous expenditure refers to the part of total expenditure that does not depend on income or output. When it decreases, this means that total expenditure is decreasing at each level of income or output, causing a shift of the AE curve downward.

When Autonomous Expenditure Decreases,