Use the figure below to answer the following questions.

Figure 27.3.1
The economy shown in the graph does not engage in international trade and has no government. Planned aggregate expenditure equals the sum of consumption expenditure (C)and investment (I).
-Refer to Figure 27.3.1. Autonomous expenditure equals
A)$100 billion.
B)$25 billion.
C)$50 billion.
D)$125 billion.
E)$200 billion.

Question

Use the figure below to answer the following questions.
  
Figure 27.3.1
The economy shown in the graph does not engage in international trade and has no government. Planned aggregate expenditure equals the sum of consumption expenditure (C)and investment (I).
-Refer to Figure 27.3.1. Autonomous expenditure equals
A)$100 billion. 
B)$25 billion. 
C)$50 billion. 
D)$125 billion. 
E)$200 billion.

Quizplus · Accepted Answer

Autonomous expenditure is the level of expenditure that does not depend on the level of national income or GDP. In the context of the figure, it is typically represented by the intercept of the aggregate expenditure line on the vertical axis.

Use the Figure Below to Answer the Following Questions