What is true about aggregate expenditures?

Question

Quizplus · Accepted Answer

At equilibrium, aggregate expenditures will be equal to national income, as any excess or deficiency in expenditures will be adjusted for through changes in inventories or prices.

Answer: C 
 Aggregate expenditures are equal to the sum of consumption (C), investment (I), and net exports (X).

Answer: D 
 The level of savings affects aggregate expenditures, as an increase in savings will decrease consumption and thus decrease aggregate expenditures.

Answer: E 
 Inventory changes can affect aggregate expenditures, as businesses may adjust their production and purchasing decisions based on their inventory levels. However, this is not the only determinant of aggregate expenditures.

What Is True About Aggregate Expenditures