Any Expenditure Component That Depends on the Level of Real

question 8

Multiple Choice

Any expenditure component that depends on the level of real GDP is called

• A) spurious expenditure.
• B) equilibrium expenditure.
• C) induced expenditure.
• D) autonomous expenditure.

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Definitions:

Wage Expense

The total cost incurred by a company for the salaries and wages of its employees.

Withdrawals

Sums of money withdrawn by the business owner(s) for private expenses.

General Journal

A basic accounting record used to keep track of all business transactions not recorded in specialized journals.

Account Titles & Descriptions

Names and explanations assigned to individual accounts in the financial statements, reflecting the nature and type of transaction.