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

Question

Quizplus · Accepted Answer

Autonomous expenditure is the portion of spending that does not vary with the level of real GDP; it is independent of the economy's income level. Examples include basic consumption that must occur regardless of income, and investment that firms undertake based on factors other than the current level of GDP.

Expenditure That Does NOT Depend on Real GDP Is Called