Asked by
Intisher Chowdhury
on Nov 11, 2024
Verified
An increase in autonomous investment in an economy will _____.
A) shift the aggregate expenditure line upward
B) shift the aggregate expenditure line downward
C) result in an upward movement along the aggregate expenditure line
D) result in a downward movement along the aggregate expenditure line
E) increase aggregate expenditures only at high levels of income
Autonomous Investment
Investment that is not influenced by the current level of income or production, often driven by technological innovations or changes in policy.
Aggregate Expenditure Line
A visual depiction in macroeconomics illustrating the overall expenditures on goods and services within an economy across different income levels.
- Understand how autonomous investments affect aggregate expenditure and its impact on the economy.
Verified Answer
EC
Learning Objectives
- Understand how autonomous investments affect aggregate expenditure and its impact on the economy.