An increase in government spending for goods and services is an autonomous increase in aggregate demand.

Question

Quizplus · Accepted Answer

An autonomous increase in aggregate demand refers to an increase in demand that occurs independently of changes in other economic factors such as prices or income. An increase in government spending for goods and services is an example of an autonomous increase in aggregate demand because it is initiated by the government and not influenced by other economic factors.

An Increase in Government Spending for Goods and Services Is