The sum of planned levels of consumption, investment, government purchases, and net exports, at a given price level, is called
A) total production.
B) aggregate supply.
C) aggregate demand.
D) aggregate expenditures.

Question

Quizplus · Accepted Answer

The sum of planned levels of consumption, investment, government purchases, and net exports is known as aggregate expenditures. Aggregate demand, on the other hand, represents the total quantity of goods and services that all buyers in the economy are willing and able to purchase at a given price level. While aggregate supply refers to the total quantity of goods and services that firms are willing and able to produce at a given price level, based on their production costs and technology. Total production is the sum of all final goods and services produced in an economy within a particular time period. Therefore, the correct choice is D.

The Sum of Planned Levels of Consumption, Investment, Government Purchases