In the very short run, the components of aggregate planned expenditure that depend on the level of real GDP are
A) planned government expenditures on goods and services and planned imports.
B) planned investment and planned exports.
C) planned wealth and planned imports.
D) planned consumption expenditure and planned imports.

Question

Quizplus · Accepted Answer

In the very short run, planned consumption expenditure and planned imports are the only components of aggregate planned expenditure that depend on the level of real GDP. Planned investment and planned government expenditures on goods and services may vary in the short run due to other factors such as interest rates and policy decisions, while planned exports and planned wealth are influenced by external factors beyond the level of real GDP.

In the Very Short Run, the Components of Aggregate Planned