Autonomous expenditure times the multiplier equals
A)autonomous saving.
B)autonomous consumption.
C)equilibrium GDP.
D)planned autonomous investment.

Question

Quizplus · Accepted Answer

Autonomous expenditure refers to the spending that is not affected by changes in GDP, such as government spending or investment. The multiplier refers to the increase in GDP that results from an increase in autonomous expenditure. Therefore, multiplying autonomous expenditure by the multiplier will give the equilibrium GDP, which is the level of output where aggregate demand equals aggregate supply.

Autonomous Expenditure Times the Multiplier Equals