The sum of the components of aggregate expenditure that vary with real GDP equal
A) induced expenditures.
B) the MPC.
C) autonomous expenditures.
D) autonomous consumption.

Question

Quizplus · Accepted Answer

Induced expenditures are the components of aggregate expenditure that vary with the level of real GDP. These include spending by households, firms, and the government that changes as income or production levels change, unlike autonomous expenditures which do not vary with GDP.

The Sum of the Components of Aggregate Expenditure That Vary