The part of aggregate planned expenditure that does not vary with real GDP_________ .
A) equals equilibrium expenditure
B) is induced expenditure
C) is autonomous expenditure
D) equals zero

Question

Quizplus · Accepted Answer

Autonomous expenditure refers to the part of aggregate planned expenditure that does not vary with real GDP. Therefore, option C is the correct answer. Option A is incorrect because equilibrium expenditure varies with real GDP. Option B is incorrect because induced expenditure varies with real GDP. Option D is incorrect because there is always some level of autonomous expenditure.

The Part of Aggregate Planned Expenditure That Does Not Vary