Home › Bihar Board Class 12 (Arts) › Economics › Determination of Income and Employment › What is autonomous consumption?
What is autonomous consumption?
AConsumption independent of income
BConsumption rising with income
CConsumption paid by the state
DConsumption of imported goods
Answer & Solution
Correct answer: A. Consumption independent of income
Autonomous consumption is the level of consumption that still takes place when income is zero, so it does not depend on income.
Related questions
With a government, which term simply adds to the autonomous part of demand?How does government spending G affect aggregate demand?With A = 50, MPS = 0.2 and Y = 4000 crore, what is ex ante aggregate demand?Equilibrium output also fixes which variable, given other factors of production?The effective demand principle assumes aggregate supply is what at the fixed price?Under the effective demand principle, what determines aggregate output?Excess demand in the economy leads to what in the long run?What does deficient demand lead to in the long run?