What is autonomous expenditure?
Understand the Problem
The question is asking about the concept of autonomous expenditure, which refers to the level of spending in an economy that occurs regardless of the level of income or output. This includes expenditures that are necessary for maintaining basic functions, such as government spending, investment, and consumption that does not change with income levels.
Answer
Components of aggregate expenditure not affected by real income.
Autonomous expenditure refers to the components of an economy's aggregate expenditure that are not impacted by the economy's real level of income.
Answer for screen readers
Autonomous expenditure refers to the components of an economy's aggregate expenditure that are not impacted by the economy's real level of income.
More Information
These expenditures are considered necessary, such as government spending on infrastructure and individual expenses on basic needs.
Sources
- Autonomous Expenditure – Definition, What is ... – ClearTax - cleartax.in
- Autonomous Expenditure – What Is It, Formula, How To Calculate? - wallstreetmojo.com
- Autonomous Expenditures – Overview, The Sraffian Supermultiplier - corporatefinanceinstitute.com
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