Autonomous and Induced investment - The investment function, Macroeconomics Video Lecture | Macro Economics - B Com

okay this activity deals of investment
and yeah we have to draw two diagrams
the one showing that investment is
autonomous with respect to the level of
output and income in other words it's
the level of investment spending is not
being influenced by the level of output
and it is one we can assign investment
is a positive function increases there
is a corresponding increase in the level
of investment spending now to plot that
this one the autonomous spot we will put
output on this axis horizontal one I'm
the building one we put you our
investment now to show that investment
is autonomous in other words it's not
influenced by output you have another
horizontal line here meaning that
regardless of the change in output
investment spending is unchanged there
are other factors that determines that
level of investment spending in this
diagram we're gonna plot this
relationship there's positive
relationship between the investment and
the level of output once again output on
this axis spending yeah
now if the shoulder this is a positive
relationship this is not a curve will
look like indeed showing that as the
level of output increases there is a
corresponding increase in the level of
investment spending