Final answer:
In economics, endogenous variables are the ones being explained or the effects, while exogenous variables are the ones doing the explaining or the causes. Government spending (G) is considered an endogenous variable because it is influenced by changes in income.
Step-by-step explanation:
In economics, the variables in a function or equation can be divided into endogenous and exogenous variables.
Endogenous variables are the ones being explained or the effects, while exogenous variables are the ones doing the explaining or the causes.
In this context, government spending (G) is considered an endogenous variable because it is influenced by changes in income.