Autonomous expenditure times the multiplier equals
A)autonomous saving.
B)autonomous consumption.
C)equilibrium GDP.
D)planned autonomous investment.
E)government budget deficit.

Question

Quizplus · Accepted Answer

Autonomous expenditure times the multiplier equals equilibrium GDP. This is because autonomous expenditure represents spending that is independent of income, while the multiplier captures the cumulative effect of changes in spending on income. Therefore, multiplying autonomous expenditure by the multiplier gives us the total level of spending necessary to reach equilibrium GDP. The other answer choices are not directly related to autonomous expenditure and the multiplier.

Autonomous Expenditure Times the Multiplier Equals