Aggregate output is ________ related to autonomous consumer expenditure,and is ________ related to the level of taxes.
A)negatively;negatively
B)negatively;positively
C)positively;negatively
D)positively;positively

Question

Quizplus · Accepted Answer

Aggregate output is positively related to autonomous consumer expenditure because when consumers spend more autonomously, it increases overall demand, leading to higher production and output. It is negatively related to the level of taxes because higher taxes reduce disposable income, leading to lower consumption and investment, and thus, lower aggregate output.

Aggregate Output Is ________ Related to Autonomous Consumer Expenditure,and Is