AUTONOMOUS EXPENDITURE

A macroeconomic economic jargon employed to define the components of an aggregate expenditure of an economy which are are not affected by the real level of income of that same economy. This kind of spending is taken as necessary and automatic, whether taking place at the individual level or government level. According to the classical economic theory, an increase in autonomous expenditures will develop at least equivalent rise in the aggregate output (such as GDP), even it not a greater increase.

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