Total, or aggregate, spending includes spending on newly produced goods and services:
A) and on financial assets such as stocks and bonds.
B) by households, businesses, government units, and foreign buyers.
C) by households, businesses, and government units, but not foreign buyers.
D) that is based on earned income, but not transfer payments, borrowing, and savings.

Question

Quizplus · Accepted Answer

Total or aggregate spending includes expenditures by households, businesses, government units, and foreign buyers on newly produced goods and services. It encompasses all sectors of an economy that purchase goods and services, reflecting the overall demand within that economy.

Total, or Aggregate, Spending Includes Spending on Newly Produced Goods