Read the two statements below and indicate if they are true or false.
I. Autonomous expenditures change when GDP changes.
II. Aggregate planned expenditure is the sum of planned consumption expenditure, investment, government expenditure, and net exports.
A) I is true and II is false
B) I and II are both false.
C) I is false and II is true.
D) I and II are both true.

Question

Quizplus · Accepted Answer

Autonomous expenditures do not change with GDP; they are independent of the level of GDP. Aggregate planned expenditure is indeed the sum of planned consumption expenditure, investment, government expenditure, and net exports.

Read the Two Statements Below and Indicate If They Are