Induced expenditures are defined as that part of
A) autonomous expenditure that responds to changes in real GDP.
B) aggregate expenditure that responds to changes in real GDP.
C) autonomous expenditure that does not respond to changes in real GDP.
D) real GDP that does not respond to changes in aggregate expenditure.
E) aggregate expenditure that does not respond to changes in real GDP.

Question

Quizplus · Accepted Answer

Induced expenditures are those components of aggregate expenditure that vary with changes in the level of real Gross Domestic Product (GDP), such as consumer spending on goods and services that increases as GDP increases.

Induced Expenditures Are Defined as That Part of