Planned aggregate expenditure in an economy is equal to:
A) the level of spending on goods and services in an economy that is planned by purchasers.
B) the level of planned expenditure on the economy by a government.
C) the level of expenditure that a ?rm will plan to spend on factors of production.
D) the level of investments which foreign ?rms plan to make in the domestic economy.

Question

Quizplus · Accepted Answer

Planned aggregate expenditure refers to the total amount of spending on goods and services that is intended or planned by all sectors of an economy, including households, businesses, and the government. It encompasses all planned spending, not just that by the government or firms on factors of production or foreign investments.

Planned Aggregate Expenditure in an Economy Is Equal To