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Q: What happens if autonomous expenditure increases?
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On the aggregate expenditure graph if autonomous investment decreased by 10 billion what happens to the aggregate expenditure line and planned savings?

autonomous onvestment cant be decreased


What is difference between Autonomous Expenditure and Induced Expenditure?

AUTONOMOUS AND INDUCEDEXPENDITURE :Autonomous expenditure is independent ofchanges in real GDP, whereas induced expenditurevaries as real GDP changes. In general, a change inautonomous expenditure creates a change in realGDP, which in turn creates a change in inducedexpenditure. The induced changes are at the heartof the multiplier effect.Induced expenditure is the sum of the componentsof aggregate expenditure that change withGDP.♦ Autonomous expenditure is the sum of the componentsof aggregate expenditure that do notchange when real GDP changes.


According to the Multiplier Equation equilibrium income will be equal to the multiplier divided by autonomous expenditures?

Actually it is the change in the equilibrium expenditure divided by the change in autonomous expenditure. That will equal the expenditure multiplier.


The ratio of the change of the national income to the change in autonomous expenditure that brought it about- is known as?

the "Multiplier"


What happens when a capital expenditure is treated as a revenue expenditure?

Expenses are overstated and assets are overstated


What happens when a capital expenditure is treated as revenue expenditure?

Expenses are overstated and assets are overstated


What happens when capital expenditure is treated as revenue expenditure?

Expenses are overstated and assets are overstated


What hormone suppresses appetite and increases energy expenditure?

leptin


Meaning of development and non development expenditure?

developmental expenditure in the country increases the purchasing power,aggregate deman and prices,resulying in increased imports


What happens to the total expenditures for a product with elastic demand when is price goes up?

When the price falls and the demand is elastic ie. ed >1 the total expenditure increases according to the total outlay method.


What happens when wbc increases?

wht happens if WBC increases?


What happens when expenditure exceeds income?

We can say that the business is in profit