Difference between Autonomous Investment Expenditure?and?Induced Investment Expenditure with examples.
|Autonomous Investment||Induced Investment|
|1. They are regular or normal investment that doesn't affected by the income level.||1. They are those investment that are done with the motive of earning profits, they get affected with the level of national income.|
|2. It is income-inelastic as it doesn't affected by income level.||2. It is income -elastic affected by change in income.|
|3. Its curve is horizontal straight line i.e. parallel to x- axis.||3. Its curve is positively sloped alike supply curve.|
|4. For example construction of roads, railways etc by the government are considered as autonomous investment. Investment by government in public utilities.||4. For example construction of building by private sector that will help them to increase their productivity and will help in boosting the economy by creating more jobs.