The total level of all planned expenditures in the economy best describes
A) aggregate supply.
B) aggregate demand.
C) aggregate expenditures.
D) both B and C are correct.

Question

Quizplus · Accepted Answer

Aggregate demand represents the total amount of goods and services demanded in the economy at a given overall price level and in a given time period. Aggregate expenditures, in the context of this question, can be considered synonymous with aggregate demand, as they both refer to the total spending on goods and services in the economy. Therefore, both B and C correctly describe the total level of all planned expenditures in the economy.

The Total Level of All Planned Expenditures in the Economy