From a supply perspective, what impact would an increase in the ...

[cartlidgeashley]

From a supply perspective, what impact would an increase in the price of motorcycles have on the market for motorcycles?
 
  What will be an ideal response?

Question 2

How do fluctuations in autonomous expenditure influence real GDP?
 
  What will be an ideal response?

[amit]

Answer to Question 1

An increase in the price of motorcycles would generate an increase in the quantity of motorcycles supplied in the market.

Answer to Question 2

Fluctuations in autonomous expenditure bring business cycle turning points. When autonomous expenditure changes, the economy moves from one phase of the business cycle to the next. For example, if autonomous expenditure decreases, equilibrium expenditure and real GDP decrease and, as a result, the economy enters the recession phase of the business cycle.