In the very short run, the components of aggregate planned expenditure that depend on the level of real GDP are
A) planned consumption expenditure and planned imports.
B) planned investment and planned imports.
C) planned investment and planned exports.
D) planned government expenditure on goods and services and planned imports.

Question

Quizplus · Accepted Answer

In the very short run, the components of aggregate planned expenditure that depend on the level of real GDP are planned consumption expenditure and planned imports. This is because consumption expenditure is directly influenced by income levels (real GDP), and imports are affected by domestic economic activity and income.

In the Very Short Run, the Components of Aggregate Planned