Why are government purchases assumed to be autonomous?
A) because they are independent of the price level
B) because they are independent of the level of real GDP
C) because they are independent of consumption
D) because they are independent of investment

Question

Why are government purchases assumed to be autonomous?  
A) because they are independent of the price level 
B) because they are independent of the level of real GDP 
C) because they are independent of consumption 
D) because they are independent of investment

Quizplus · Accepted Answer

Government purchases are considered autonomous because they are typically determined by policy decisions and budget allocations, rather than being directly influenced by the current level of real GDP.

Why Are Government Purchases Assumed to Be Autonomous