SOCIAL STUDIES HIGH SCHOOL

A change in consumption spending caused by income changes is ________ change in spending, and a change in government spending that occurs to improve roads and bridges is ________ change in spending. Group of answer choices an expansionary; a contractionary a contractionary; an expansionary an autonomous; an induced an induced; an autonomous

Answers

Answer 1
Answer:

Answer:

The correct answers are:

  • A change in consumption spending caused by income changes is an induced change in spending.
  • A change in government spending that occurs to improve roads and bridges is an expansionary change in spending.

Explanation:

Induced and autonomous spending are categories that refer to personal spending.

Autonomous spending is spending that is incurred even if total income is zero, for example, a person without income still needs food and shelter for survival, so this person might incurr a debt, or in the worst situation, become a homeless beggar.

Induced spending is spending that changes depending on disposable income. If people have more disposable income, their induced spending will increase proportionally.

Expansionary and contractionary spending are categories that refer to government spending.

Expansionary spending consists in increasing government spending on infraestructure, welfare programs, public employment, among other things, with the goal of improving the economy.

Contractionary spending consists in reducing government spending. This may be caused by a negative fiscal situation, or a government can do it voluntarily in order to keep a growing economy from overheating.

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Answers

Answer:

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Explanation:

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Answers

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Answers

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