Planned aggregate expenditure increases when ________ in the income-expenditure model.

Name: Planned aggregate expenditure increases when ________ in the income-expenditure model.
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Question

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Planned aggregate expenditure includes all components of spending, including consumption, investment, government spending, and net exports. Therefore, when the government sector is included, planned aggregate expenditure increases. Excluding any component of spending would decrease planned aggregate expenditure.

Planned Aggregate Expenditure Increases When ________ in the Income-Expenditure Model