________ is equal to consumption spending plus planned investment spending plus government purchases plus net exports.
A)Full employment GDP
B)Short-run aggregate supply
C)Planned inventory investment
D)Planned aggregate expenditure
E)Equilibrium GDP

Question

Quizplus · Accepted Answer

The definition provided in the question is that of planned aggregate expenditure (PAE) which includes consumption, planned investment, government purchases, and net exports. PAE influences equilibrium GDP because it represents the total amount of spending planned in the economy. When PAE increases or decreases, it leads to a corresponding change in equilibrium GDP.

________ Is Equal to Consumption Spending Plus Planned Investment Spending