$$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Real GDP } \
\text { (trillions of 2005 } \
\text { dollars) }
\end{array} & \begin{array} { c }
\text { Aggregate } \
\text { expenditure (trillions } \
\text { of 2005 dollars) }
\end{array} \
\hline 0 & 0.3 \
\hline 1.0 & 1.2 \
\hline 2.0 & 2.1 \
\hline 3.0 & 3.0 \
\hline 4.0 & 3.9 \
\hline 5.0 & 4.8 \
\hline
\end{array}$$
-The data in the above table indicate that autonomous expenditure is

Question

$$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Real GDP } \
\text { (trillions of 2005 } \
\text { dollars) }
\end{array} & \begin{array} { c } 
\text { Aggregate } \
\text { expenditure (trillions } \
\text { of 2005 dollars) }
\end{array} \
\hline 0 & 0.3 \
\hline 1.0 & 1.2 \
\hline 2.0 & 2.1 \
\hline 3.0 & 3.0 \
\hline 4.0 & 3.9 \
\hline 5.0 & 4.8 \
\hline
\end{array}$$
-The data in the above table indicate that autonomous expenditure is

Quizplus · Accepted Answer

Autonomous expenditure is the amount of spending that is independent of changes in GDP. Looking at the table, we can see that when GDP is 0, aggregate expenditure is 0.3. This means that there is some spending occurring even when GDP is 0, indicating that there is autonomous expenditure. Therefore, the best choice is A, $0.3 trillion.

-The Data in the Above Table Indicate That Autonomous Expenditure