In the planned total expenditure equation, the group that is not the autonomous spending group
A) is made up of those components which depend directly on the level of national income.
B) is made up of those components which depend directly on the level of potential output.
C) is made up of those components which never change.
D) is made up of those components which do not depend directly on the level of national income.

Question

Quizplus · Accepted Answer

Autonomous spending refers to components of expenditure that do not change with the level of national income. Therefore, the group that is not autonomous is made up of components that depend directly on the level of national income.

In the Planned Total Expenditure Equation, the Group That Is