Autonomous Expenditure

Dictionary Says

Definition of 'Autonomous Expenditure'

A macroeconomic term used to describe the components of an economy's aggregate expenditure that are not impacted by that same economy's real level of income. This type of spending is considered automatic and necessary, whether occurring at the government level or the individual level. Classical economic theory states that a rise in autonomous expenditures will create at least an equivalent rise in aggregate output (such as GDP), if not a greater rise.
Investopedia Says

Investopedia explains 'Autonomous Expenditure'

Some of the spending classes that are considered autonomous of income levels (which can counted as either individual income or taxation income) are government expenditures, investments, exports and basic living expenses (such as food and shelter).

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Autonomous Consumption

    The minimum ...
  2. Macroeconomics

    The field of ...
  3. Real Gross Domestic Product (GDP)

    An ...
  4. Gross Domestic Product - GDP

    The monetary ...
  5. Consumer Price Index - CPI

    A measure that ...
  6. Boom

    A period of time ...
  7. Industry

    A classification ...
  8. Prisoner's Dilemma

    A paradox in ...
  9. Price Risk

    The risk of a ...
  10. Illiquid

    The state of a ...

Articles Of Interest

  1. Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  2. Cashing In On Macroeconomic Trends

    Learn to identify the things that may impact your investments down the road.
  3. The Importance Of Inflation And GDP

    Learn the underlying theories behind these concepts and what they can mean for your portfolio.
  4. How Influential Economists Changed Our History

    Find out how these five groundbreaking thinkers laid our financial foundations.
  5. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  6. The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.
  7. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  8. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  9. Invest Like A Pro

    By following the strategies of the pros, even a beginner can learn to invest like an expert.
  10. 5 Nobel Prize-Winning Economic Theories You Should Know About

    Here are 5 prize-winning economic theories that you’ll want to be familiar with.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center