Total planned real expenditures measured along the aggregate demand curve are made up of
A) consumption spending, investment spending, government spending, and net export spending.
B) consumption spending, income, government spending, and net export spending.
C) consumption spending, saving, investment spending, and government spending.
D) consumption spending, factor payments, investment spending, and net export spending.

Question

Quizplus · Accepted Answer

Total planned real expenditures measured along the aggregate demand curve are determined by four components: consumption spending, investment spending, government spending, and net export spending. These are the major spending categories in a country's national income accounts, and they are used to calculate GDP. Therefore, option A is the correct answer.

Total Planned Real Expenditures Measured Along the Aggregate Demand Curve