Keynes defined aggregate supply as
A) the total dollar amount of money spent on goods and services by consumers, investors, government and net spending by foreigners at a given price level.
B) the total dollar amount of money spent on goods and services by consumers at a given price level.
C) the total output produced and offered for sale at a given price level by all economic units.
D) the total output produced and offered for sale at a given price level by the private sector.

Question

Quizplus · Accepted Answer

Keynes defined aggregate supply as the total output produced and offered for sale at a given price level by all economic units. This includes both the private and public sectors, and is not limited to just consumer spending like in option B or total spending by all economic units like in option A. Option D is also too limited since it only refers to the private sector.

Keynes Defined Aggregate Supply as