Explain What Happens to Equilibrium Expenditure If Autonomous Expenditure Increases

question 127

Essay

Explain what happens to equilibrium expenditure if autonomous expenditure increases by $100 million.

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Definitions:

Square

A geometric shape with four equal sides and four right angles, also used to describe the operation of multiplying a number by itself.

X-intercept

The point at which a graph intersects the x-axis.

Y-intercept

The point where a graph crosses the y-axis, represented by the coordinates (0,y).

Estimate

The determination of an approximation of a result which is not necessarily exact, but within acceptable bounds of accuracy.