The portion of planned aggregate expenditure determined within the model (because it depends on output)is called ______ planned aggregate expenditure.

Question

Quizplus · Accepted Answer

The portion of planned aggregate expenditure that depends on output is induced planned aggregate expenditure. This is because changes in output (i.e. income) induce changes in consumption expenditure, which is the biggest component of planned aggregate expenditure. The other choices are not accurate descriptions of this concept.

The Portion of Planned Aggregate Expenditure Determined Within the Model