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The introduction of government spending added ____ million(ZAR) to the autonomous total spending in the economy.
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3 stepsIdentify the initial autonomous spending.
The initial aggregate spending equation given is . In this equation, the autonomous component (the intercept when ) is 40.
Identify the government spending.
The graph also shows a horizontal line labeled . This represents government spending, which is an autonomous component of aggregate demand.
Determine the amount added by government spending.
The question asks how much government spending added to the autonomous total spending. From the graph, the value of government spending () is 20 million (ZAR).
The introduction of government spending added million (ZAR) to the autonomous total spending in the economy.
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