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Economic Definition of autonomous change. Defined.

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Term autonomous change Definition: A change in autonomous expenditures that sets in motion a change in the national income and gross domestic product through the multipiler. In terms of Keynesian economics and the Keynesian cross diagram, autonomous changes are seen as shifts in the aggregate expenditures line. Autonomous changes cause changes in income and production which then "induce" further changes in aggregate expenditures, especially consumption expenditures, which are induced changes. This two step process, autonomous changes causing induced changes, is key to explaining business cycle fluctuations.


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