In the aggregate expenditures model, the level of expenditures that exists when income is zero is called _____ spending.
A) autonomous
B) zero-base
C) neutral
D) equilibrium

Question

Quizplus · Accepted Answer

Autonomous spending refers to the level of expenditures that occurs when income is zero, representing the baseline level of spending that does not vary with income. This includes essential expenditures such as basic living expenses and investment that occur regardless of the income level.

In the Aggregate Expenditures Model, the Level of Expenditures That