Question

Which expression is given for Total Autonomous Expenditure?

Options

• \[\overline{A}=Y-T\]

• \[\overline{A}=\overline{C}+cY\]

• \[\overline{A}=G-cT\]

• \[\overline{A}=\overline{CD}+\overline{I}\]

Answer 1

Total Autonomous Expenditure is expressed as \[\overline{A}=\overline{CD}+\overline{I}\]. It combines the autonomous consumption term with Autonomous Investment.