Expenditure that does NOT depend on real GDP is called
A) induced expenditure.
B) spurious expenditure.
C) equilibrium expenditure.
D) autonomous expenditure.

Question

Quizplus · Accepted Answer

Autonomous expenditure is also known as independent expenditure, and it includes purchases that are not influenced by changes in real GDP, such as government spending, investments, exports, and autonomous consumption. Induced expenditure, on the other hand, varies with changes in real GDP, while equilibrium expenditure occurs when aggregate demand equals aggregate supply at a particular price level. Spurious expenditure is not a recognized concept in economics.

Expenditure That Does NOT Depend on Real GDP Is Called