The sum of planned consumption expenditure, planned investment, planned government expenditures, and planned net exports is .
A) aggregate expenditure
B) the expenditure approach to real GDP
C) aggregate planned expenditure
D) real GDP

Question

Quizplus · Accepted Answer

The sum of planned consumption expenditure, planned investment, planned government expenditures, and planned net exports is referred to as aggregate planned expenditure. It is a measure used in Keynesian economics to determine equilibrium output in the short run. Therefore, option C is the correct choice. The other options are related to different concepts such as the overall value of goods and services produced (real GDP), the approach to measure real GDP (expenditure approach), and the total value of all goods and services produced in the economy (aggregate expenditure).

The Sum of Planned Consumption Expenditure, Planned Investment, Planned Government