Explain the concept of autonomous consumption


Discussion Post

• What are the major factors that determine investment, and what impact does each have on aggregate demand?

• The aggregate demand curve portrays the relationship between price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustrations of each.

• What role do imports play in aggregate demand? Under which conditions will changes in imports expand aggregate demand? Reduce aggregate demand?

• Identify factors that would cause consumption spending to increase. What effect would that have on aggregate demand?

• Explain the concept of autonomous consumption.

The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.

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