Exports Are Treated as Autonomous Expenditure in Our Simple Macro

question 46

Multiple Choice

Exports are treated as autonomous expenditure in our simple macro model because

• A)exports typically do not change as a result of a change in Canadian national income.
• B)exports are always constant in dollar terms.
• C)they are a component of net exports,which is autonomous in our model.
• D)exports are a small component in the Canadian economy and are not significant in the model.
• E)exports are a function of Canadian national income,which is autonomous in our model.

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Definitions:

Price of X

The amount of money required to purchase a unit of Product X, influenced by factors such as supply, demand, and market conditions.

Individual Demand Curve

A graphical representation showing the quantity of a goods or services a single consumer is willing and able to purchase at various prices.

Budget Constraints

The limitations on the spending behavior of consumers, based on their income and the prices of goods and services.

Indifference Curves

Representations on a graph showing combinations of goods or services between which a consumer is indifferent, meaning they have no preference for one combination over another.