Question:
Total consumption expenditure by households under Keynesian Economics is a combination of __________ and ________ .
Total consumption expenditure by households under Keynesian Economics is a combination of __________ and ________ .
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Understand the distinction between autonomous and induced components in Keynesian economics to analyze expenditure functions.
Updated On: Jan 13, 2026
- Autonomous Consumption, Autonomous Investments
- Autonomous Investments, Induced Consumption
- Induced Investments, Autonomous Investments
- Autonomous Consumption, Induced Consumption
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The Correct Option is D
Solution and Explanation
Under Keynesian economics, total consumption expenditure is the sum of autonomous consumption (which does not depend on income) and induced consumption (which depends on income level). Together, they form the total expenditure in an economy.
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