In the aggregate expenditure model,________ has both an autonomous component and an induced component.
A)planned investment spending
B)consumption spending
C)government spending
D)net export spending

Question

Quizplus · Accepted Answer

Consumption spending has both an autonomous component (such as income levels and consumer confidence) and an induced component (such as changes in disposable income).

In the Aggregate Expenditure Model,________ Has Both an Autonomous Component