Aggregate output is:
A) equal to consumer spending on goods and services.
B) the value of new construction, changes in inventories, and the purchase of physical capital by businesses.
C) the total quantity of intermediate goods produced by an economy.
D) the total quantity of final goods and services produced by an economy.

Question

Quizplus · Accepted Answer

Aggregate output is the total quantity of final goods and services produced by an economy, which includes both consumer spending and investment spending. Option A is incorrect as it only considers consumer spending, while option B only includes certain components of investment spending. Option C is incorrect as it refers to intermediate goods, which are not included in aggregate output.

Aggregate Output Is