In an economy without a government and without international transactions,aggregate expenditure at each level of income is equal to:
A)consumption plus saving.
B)planned investment plus saving.
C)disposable income plus the price level.
D)consumption plus planned investment.
E)planned investment minus saving.

Question

Quizplus · Accepted Answer

In an economy without government and international transactions, aggregate expenditure at each level of income is equal to consumption plus planned investment as there are no factors such as government expenditure or net exports to be taken into account. Thus, the best choice is option D.

In an Economy Without a Government and Without International Transactions,aggregate