What is the main claim of the aggregate expenditures model?
A) The rich get richer and the poor get poorer.
B) Spending will generate income, which allows for more spending.
C) Lower taxes for businesses will "trickle-down" to consumers.
D) Spending is harmful while saving is helpful to an economy.

Question

Quizplus · Accepted Answer

The aggregate expenditures model suggests that spending in an economy generates income, which in turn leads to more spending, creating a cycle that can drive economic growth.

What Is the Main Claim of the Aggregate Expenditures Model