In the Keynesian aggregate expenditures model, "aggregate expenditures" refer to:
A) the amount of GDP that could be produced if unemployment were zero.
B) the combined expenditures of consumers, businesses, governments, and foreigners (net exports).
C) the amount of demand for consumer goods that would arise if all citizens had all the income they wanted.
D) consumer spending measured in constant prices.

Question

Quizplus · Accepted Answer

Aggregate expenditures in the Keynesian model refer to the combined expenditures of consumers, businesses, governments, and foreigners (net exports). This includes consumer spending, investment spending, government spending, and exports minus imports.

In the Keynesian Aggregate Expenditures Model, "Aggregate Expenditures" Refer To