The components of aggregate expenditure that are not influenced by GDP are known as
A) unplanned expenditure.
B) induced expenditure.
C) planned expenditure.
D) autonomous expenditure.
E) fixed expenditure.

Question

Quizplus · Accepted Answer

Autonomous expenditure is not influenced by GDP and includes factors such as government spending, investment, and exports. Unplanned expenditure and induced expenditure are both influenced by changes in GDP, planned expenditure may or may not be influenced by GDP, and fixed expenditure is a broader term that does not specifically refer to components of aggregate expenditure.

The Components of Aggregate Expenditure That Are Not Influenced by GDP