The situation in which there is an autonomous expenditures, in each successive round that the multiplier is applied. This statement is true.
This all happens due to the expenditure multiplier in the economy.
The expenditure multiplier shows the impact of the change in autonomous spending on the total spending as well as the aggregate demand in the economy.
In order to find the expenditure multiplier, first of all divide the final change in real GDP by the change in autonomous spending of the economy.
The expenditure multiplier is also able to tell us how much more or less spending is needed to exit from an output gap.
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