Mauritius, an island off the coast of Africa, competes with other countries producing goods with low-skilled labor. In 2006, it was reported that its "... factories have been exposed to ... competition from China, India and other Asian mass producers." As a result, "the main export industry has seen a 30 per cent reduction in volume ..." www.ft.com, 3/13/2006
The story describes

Question

Quizplus · Accepted Answer

The story describes a decrease in autonomous expenditure, which refers to spending that does not depend on the current level of income or output. This is evident from the reduction in export volume due to increased competition, affecting the demand for Mauritius's goods independently of its own economic conditions.

Mauritius, an Island Off the Coast of Africa, Competes with Other