Answer:
The difference between autonomous expenditure and induced expenditure is as follows:
The autonomous expenditure is incurred even without a disposable income. The expenditure is incurred to provide basic necessities of life. In such a situation, the person spends from savings account or borrows to ensure that the basic necessities are provided.
On the other hand, induced expenditure is a disposable income-based expenditure. This implies that when disposable income rises, induced expenditure also rises, and vice versa. Induced expenditure is usually incurred to fund normal goods and services and not necessities. Without disposable income, there is no induced expenditure.
All the four sectors of the economy engage in these expenditures. The public (government) and household sectors are mostly affected. However, even the business and non-profit sectors are also affected by these types of expenditure.
Explanation:
We can distinguish between two types of aggregate expenditure. The first one is autonomous aggregate expenditure, which does not vary with the level of real GDP while induced aggregate expenditure varies with real GDP.
Answer:
hope this help u
Explanation:
Transferring energy into or out of a substance changes its temperature, which changes the molecules' freedom of movement. Claim 2: Transferring energy into or out of a substance changes the molecules' kinetic energy, which changes their freedom of movement.
The answer is B revenue is less than expenses
Answer and Explanation:
Given that
Drawings by owner for $1,500
The journal entry is
Drawing Dr $1,500
To cash $1,500
(being the amount withdrawn is recorded)
a. Here the two accounts are affected one is drawings account and the second one is the cash account
b. The drawing is the equity account while the cash is the asset account
c. The drawing account is increased and the cash account is decreased
d. The drawing account is debited and cash account is credited
