Aggregate expenditure is the amount of spending on goods and services in an economy. It covers household consumption, investment expenditure, government spending, and purchases by foreigners. Usually, consumption covers the majority of aggregate
Aggregate Expenditure
Autonomous Expenditure: Formula, Components, Determinants
What's it: Autonomous expenditure is unaffected by income level. In other words, they will still exist even if the income equals zero. Spending on items such as food and drink is an example. They are essential for meeting our basic needs. So, we