Consumption expenditure minus imports, which varies with real GDP, is induced expenditure.The sum of investment, government purchases, and exports, which does not vary with GDP, is autonomous expenditure. Consumption expenditure and imports can have an autonomous component. Actual aggregate expenditure is always equal to real GDP. Aggregate planned expenditure may differ from actual aggregate expenditure because firms can have unplanned changes in inventories. Equilibrium expenditure is the level of aggregate expenditure that occurs when aggregate planned expenditure equals real GDP.
