This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the difference between induced and autonomous expenditure? Which components of aggregate ... (Read 100 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
on: Jun 29, 2018
What is the difference between induced and autonomous expenditure? Which components of aggregate expenditure fall under which category?
 
  What will be an ideal response?

Question 2

The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The opportunity cost of moving from ________ is greater for ________.
 
  A) point E to point D; Bear
  B) point A to point B; Anaconda
  C) point B to point A; Bear
  D) point D to point E; Bear
  E) any point to any other point; Bear


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ngr69

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

Induced expenditure is expenditure that depends on the level of real GDP, so that when real GDP changes, induced expenditure changes. Autonomous expenditure is independent of the level of real GDP, so that when real GDP changes, autonomous expenditure does not change. Consumption expenditure includes elements of both autonomous and induced expenditure. So, too, do imports. However, investment, government expenditure on goods and services, and exports are all autonomous expenditure.

Answer to Question 2

D


Arii_bell

  • Hero Member
  • *****
  • Posts: 596
Reply #2 on: Jun 29, 2018
Thank you :)


ngr69

  • Sr. Member
  • ****
  • Posts: 318
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

The Major Components of the Limbic System The Major Components of the Limbic System
Major components and functions of the nervous system. Major components and functions of the nervous system.
Casting numbers on major components can be either cast or stamped. Casting numbers on major components can be either cast or stamped.
Serum protein electrophoresis is a technique in which serum components separate into 5 different ... Serum protein electrophoresis is a technique in which serum components separate into 5 different ...
Solve Diophantus’s Problem B–8: To find two numbers such that their difference a Solve Diophantus’s Problem B–8: To find two numbers such that their difference a
Difference between the house and the senate Difference between the house and the senate
Video: Electrical Conduction System of the Heart

For a complete list of videos, visit our video library