The level of total expenditure in an economy is the same as its aggregate supply.

Question

Quizplus · Accepted Answer

The level of total expenditure in an economy is the same as its aggregate demand, not its aggregate supply. Aggregate supply refers to the total amount of goods and services that businesses are willing and able to sell at a given price level, while aggregate demand refers to the total amount of goods and services that buyers are willing and able to purchase at a given price level.

The Level of Total Expenditure in an Economy Is the Same