If government expenditures or taxes are assumed to be autonomous,they
A)do not depend upon on the level of GDP
B)may be changed only through direct action by Congress
C)change only when the price level changes
D)change only upon executive order by the president of the United States
E)are autonomous at low levels of GDP but not at higher levels of GDP

Question

Quizplus · Accepted Answer

Autonomous government expenditures or taxes are independent of the level of GDP and are not influenced by changes in the economy. They represent a fixed amount of spending or taxation that the government plans to undertake regardless of the economic conditions. Autonomous policies are considered to be exogenous factors that affect the economy outside the realm of economic activity.

If Government Expenditures or Taxes Are Assumed to Be Autonomous,they