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AGGREGATE EXPENDITURE LINE: A line representing the relation between aggregate expenditures and gross domestic product used in the Keynesian cross. The aggregate expenditure line is obtained by adding investment expenditures, government purchases, and net exports to the consumption line. As such, the slope of the aggregate expenditure line is largely based on the slope of the consumption line (which is the marginal propensity to consume), with adjustments coming from the marginal propensity to invest, the marginal propensity for government purchases, and the marginal propensity to import. The intersection of the aggregate expenditures line and the 45-degree line identifies the equilibrium level of output in the Keynesian cross.

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AUTONOMOUS INVESTMENT: Business investment expenditures that are unrelated to income or production (especially national income or gross national product). These are investment expenditures that would occur even if national income was zero. Autonomous investment is graphically depicted as the vertical intercept of the investment line relating investment to national income. Changes in autonomous investment, along with changes in other autonomous expenditures, are what trigger the multiplier effect.

     See also | investment expenditures | national income | gross domestic product | investment line | autonomous consumption | autonomous expenditure | multiplier | induced investment |


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AUTONOMOUS INVESTMENT, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: May 23, 2025].


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BALANCE OF TRADE SURPLUS

The positive difference of the value of goods and services exported out of a country less the value of goods and services imported into the country. A balance of trade surplus is the official term for positive net exports that occurs when exports exceed imports. A balance of trade surplus is also termed a "favorable" balance of trade because it results in a net inflow of monetary payments into the domestic economic from the foreign sector, which tends to be beneficial to a country. The alternative is a balance of trade deficit in which imports exceed exports.

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