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    Macroeconomics Australia Study Set 1
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    Exam 12: Aggregate Expenditure Multiplier
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    Induced Expenditures Are Defined as That Part of
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Induced Expenditures Are Defined as That Part of

Question 1

Question 1

Multiple Choice

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.

Correct Answer:

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