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Explain what autonomous spending and induced spending are

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Reference no: EM132455511

1. Explain what autonomous spending and induced spending are.

2. State whether the following variables are autonomous and/or induced in the Keynesian model.

(i) Government expenditure (G)

(ii) Proportional taxes (T)

(iii) Exports (X)

(iv) Imports (Z)

Reference no: EM132455511

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