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Suppose the Full Employment Level of Income Is $1,200 Billion

Question 6

Multiple Choice

Suppose the full employment level of income is $1,200 billion, and the present level of income is $1,000 billion.Which of the following describes autonomous expenditure under these circumstances?  


A)  Autonomous expenditure is at full employment equilibrium. 
B)  Autonomous expenditure is too low for a full employment equilibrium. 
C)  Autonomous expenditure is too high for a full employment equilibrium. 
D)  Autonomous expenditure is the difference between the present level of income and the full employment level of income.

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