How do fluctuations in autonomous expenditure influence real GDP?
What will be an ideal response?
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.
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Lack of well-defined ____ may cause market failures
a. fiscal policies b. public transportation systems c. private property rights d. interest rates e. monetary policies
There is no longer much debate among economists concerning the severity of and the solution to the problems in using the CPI to measure the cost of living
a. True b. False Indicate whether the statement is true or false