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Explain change in autonomous spending

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Reference no: EM132639897

Aggregate expenditure is the total amount of spending in the economy that determines the level of the GDP. Components of aggregate expenditure are autonomous expenditure, planned private investments, government expenditure, and net exports. When autonomous expenditure increases or decreases, it has a multiplied effect on the GDP.

Discuss an example of a change in autonomous spending during the 1950s. Research a government policy implemented during that time and discuss the multiplier effect it had on the economy.

 

 

Reference no: EM132639897

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