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Dear student,
In short run macroeconomics equilibrium analysis investment is assumed as autonomous due to (iv) constant level of income.
Autonomous investment is that kind of investment which is independent of variations in output, income or rate of Profit. Due to this reason, it is said that autonomous investment is income inelastic. This type of investment is generally undertaken by the state. For example, expenditure made on arms and ammunitions, Discovery of new resources, growth of population, public utility work, etc.
Regards.
In short run macroeconomics equilibrium analysis investment is assumed as autonomous due to (iv) constant level of income.
Autonomous investment is that kind of investment which is independent of variations in output, income or rate of Profit. Due to this reason, it is said that autonomous investment is income inelastic. This type of investment is generally undertaken by the state. For example, expenditure made on arms and ammunitions, Discovery of new resources, growth of population, public utility work, etc.
Regards.