Expenditures That Do Not Vary with the Level of Real

question 137

Multiple Choice

Expenditures that do not vary with the level of real GDP are called

• A) exogenous aggregate expenditures.
• B) induced aggregate expenditures.
• C) endogenous aggregate expenditures.
• D) autonomous aggregate expenditures.

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Definitions:

Pre-Tax Salvage Value

The estimated resale value of an asset before taxes are considered, at the end of its useful life.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, reflecting a constant rate of expense over time.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and liquidity.