Question

Aggregate expenditure is the total amount of spending in the economy that determines the level of the GDP. Components of aggregate expenditure are autonomous expenditure, planned private investments, government expenditure, and net exports. When autonomous expenditure increases or decreases, it has a multiplied effect on the GDP.

Referring to the 10-year historical period that you chose for your final project, discuss an example of a change in autonomous spending. Research a government policy implemented during that time and discuss the multiplier effect it had on the economy.

In your response posts to your peers, comment on the conclusions drawn by your peers regarding the multiplier effect. Choose two posts you disagree with, and provide constructive critique, supporting your opinion by researching a source to back it up.

I chose the 1950's

Answer 1

Solution: A change in olanned autonomous spending will cause a change in equilibrium income. This type of expenditure is considered to be automatic and necessary which is occuring at goverment levem or individual level.

In middle of 1962. It was apparent kennedy administration economist that the economy was begining to sputter. The GDP growth gets down to 2.5 to2.3 in 1962

The kennedy tax cut of 1964 finds that fiscal and moentary policies . The tac withholding decreased to 14 percent, leading to tax reduction values of 6.7 billion.