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melanie pitcher
on Nov 11, 2024

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In an economy without a government and without international transactions,aggregate expenditure at each level of income is equal to:

A) consumption plus saving.
B) planned investment plus saving.
C) disposable income plus the price level.
D) consumption plus planned investment.
E) planned investment minus saving.

Aggregate Expenditure

The total amount of spending in the economy that includes consumption, investment, government spending, and net exports.

Consumption

The use of goods and services by households, constituting one of the major components of gross domestic product (GDP).

Planned Investment

Expenditures that businesses intend to make for the purposes of capital improvements, equipment, or inventory.

  • Acquire knowledge about the link between real GDP, aggregate expenditure, and planned investment.
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Tammy McCoyNov 14, 2024
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