Question

if autonomous consumption is greater than zero it indicates that national income of economy will be

Answer 1

Answer:

Households consume something even if their income is zero. If a household has accumulated a lot of wealth in the past or if a household expects its future income to be larger, autonomous consumption will be larger. It captures both the past and the future. We assume that the marginal propensity to consume is positive.

Answer 2

Answer:

Autonomous consumption is the minimum level of consumption or spending made by the consumer even if the consumer has no disposable income.

This spending is done for a persons basic necessities and therefore autonomous consumption.