Use the figure below to answer the following question(s).

Figure 27.3.1
The economy shown in the graph does not engage in international trade and has no government.Planned aggregate expenditure equals the sum of consumption expenditure (C)and investment (I).
-Refer to Figure 27.3.1.Autonomous expenditure equals
A)$100 billion.
B)$25 billion.
C)$50 billion.
D)$125 billion.
E)none of the above.

Question

Use the figure below to answer the following question(s).
  
Figure 27.3.1
The economy shown in the graph does not engage in international trade and has no government.Planned aggregate expenditure equals the sum of consumption expenditure (C)and investment (I).
-Refer to Figure 27.3.1.Autonomous expenditure equals
A)$100 billion. 
B)$25 billion. 
C)$50 billion. 
D)$125 billion. 
E)none of the above.

Quizplus · Accepted Answer

Autonomous expenditure is the level of expenditure that occurs when income is zero. In the context of the figure, it is the intercept of the expenditure line on the vertical axis, which is $50 billion.

Use the Figure Below to Answer the Following Question(s)