Aggregate expenditure, or the total amount of spending in the economy, equals

A. consumption spending plus planned investment spending plus government purchases plus net exports.

B. total spending by households plus total spending by businesses.

C. household spending on durable goods plus business investment spending.

D. household spending on durable goods plus household spending on nondurable goods.

Question

Maggie

Business

24 September, 17:32

Aggregate expenditure, or the total amount of spending in the economy, equals

A. consumption spending plus planned investment spending plus government purchases plus net exports.

B. total spending by households plus total spending by businesses.

C. household spending on durable goods plus business investment spending.

D. household spending on durable goods plus household spending on nondurable goods.

+3

Answers (1)

Know the Answer?

Adison Sims · Answer 1

The correct answer is the letter a. consumption spending plus planned investment spending plus government purchases plus net exports.

Explanation:

Aggregate demand is the totality of expenditures on goods and services made by households, entrepreneurs, government and the external sector in a given economy. Thus, aggregate expenditure is composed of household consumption of final goods, planned investment by enterprises, government consumption and net exports, which are the difference between export and import, which indicates the net value of the product. consumed by the external sector, that is, which is exported.