Difference between Autonomous Investment Expenditure?and?Induced Investment Expenditure with examples.
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| 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. |
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