Autonomous Demand Components in an Open Economy with Government
In an open economy that includes a government, the components of autonomous demand—spending that does not depend on the level of income—are expanded. In addition to autonomous consumption () and autonomous investment (), autonomous demand now also includes government spending () and exports (). These are treated as exogenous variables that can cause parallel shifts in the entire aggregate demand curve.
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Introduction to Macroeconomics Course
Ch.3 Aggregate demand and the multiplier model - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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Autonomous Demand Components in an Open Economy with Government
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Learn After
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