Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

In Keynesian theory, how does a rise in autonomous spending change the equilibrium level of income?

  • AIncome will increase by an amount equal to the value of autonomous spending.
  • BIncome will increase by an amount greater than the value of autonomous spending.
  • CIncome will increase by an amount smaller than the value of autonomous spending.
  • DIncome will not increase as a result of autonomous spending.

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