Any expenditure component that depends on the level of real GDP is called
A) spurious expenditure.
B) equilibrium expenditure.
C) induced expenditure.
D) autonomous expenditure.

Question

Quizplus · Accepted Answer

Induced expenditure varies with the level of real GDP, meaning it increases or decreases as the economy grows or contracts. This is in contrast to autonomous expenditure, which does not depend on the current level of real GDP.

Any Expenditure Component That Depends on the Level of Real