All else being equal, autonomous expenditure
A) increases as real GDP increases.
B) increases as real GDP decreases.
C) does not change with changes in real GDP.
D) is assumed to be zero.

Question

Quizplus · Accepted Answer

Autonomous expenditure is defined as the portion of spending that does not change with changes in the level of real GDP. It is considered independent of the economy's income level, hence it does not vary as real GDP increases or decreases.

All Else Being Equal, Autonomous Expenditure