Use the table below to answer the following questions.
Table 11.3.1
The following table shows the relationship between aggregate planned expenditure and real GDP in the hypothetical economy of Econoworld.

-Refer to Table 11.3.1.Autonomous expenditure is
A)$125 billion.
B)$500 billion.
C)$50 billion.
D)zero.
E)$100 billion.

Question

Use the table below to answer the following questions.
Table 11.3.1
The following table shows the relationship between aggregate planned expenditure and real GDP in the hypothetical economy of Econoworld.
 
-Refer to Table 11.3.1.Autonomous expenditure is
A)$125 billion. 
B)$500 billion. 
C)$50 billion. 
D)zero. 
E)$100 billion.

Quizplus · Accepted Answer

Autonomous expenditure is the amount of spending that occurs regardless of the level of GDP. In the table, when GDP is zero, the aggregate planned expenditure is $100 billion. Therefore, autonomous expenditure is $100 billion.

Use the Table Below to Answer the Following Questions