The Part of Aggregate Planned Expenditure That Does Not Vary

question 93

Multiple Choice

The part of aggregate planned expenditure that does not vary with real GDP .

• A) is induced expenditure
• B) equals zero
• C) equals equilibrium expenditure
• D) is autonomous expenditure

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Definitions:

Long-Run Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and optimal resource allocation over time.

Expected Price Level

This term indicates the average of current and anticipated prices for goods and services in an economy.

Short-Run Aggregate-Supply Curve

A graphical representation that shows the relationship between the total production of goods and services at different price levels in the short term, assuming some input prices are fixed.

Unemployment Rate

The measure of individuals in the labor force who are without jobs but are actively trying to find employment.