In the aggregate expenditure model, ________ has both an autonomous component and an induced component.
A)planned investment spending
B)consumption spending
C)government spending
D)net export spending
E)unplanned investment spending

Question

Quizplus · Accepted Answer

Consumption spending is composed of an autonomous component (basic level of spending regardless of income) and an induced component (additional spending as income increases).

In the Aggregate Expenditure Model, ________ Has Both an Autonomous