The Sum of the Components of Aggregate Expenditure That Vary

question 212

Multiple Choice

The sum of the components of aggregate expenditure that vary with real GDP is called

• A) autonomous consumption.
• B) induced expenditures.
• C) autonomous expenditures.
• D) the MPC.

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Definitions:

Dependent

An individual, typically a child or family member, whose maintenance and support can be claimed as a deduction by another, usually for tax purposes.

Head of Household

A tax filing status for individuals who are unmarried or considered unmarried, provide more than half of the household expenses, and have a qualifying person living with them.

Qualifying Child

A dependent who meets specific IRS criteria relating to relationship, age, support, and residence for tax purposes.

Keeping Up the Household

Refers to expenses incurred in maintaining a home, which, under certain conditions, might be deductible or relevant for tax credits.