The schedule that relates the level of desired total expenditures to the level of actual national income is called the
A)aggregate expenditure function.
B)dissaving function.
C)equilibrium function.
D)desired aggregate demand function.
E)consumption function.

Question

Quizplus · Accepted Answer

The relationship between desired total expenditures and actual national income is captured by the aggregate expenditure function, which shows how much firms, households, and government plan to spend at different levels of income.

The Schedule That Relates the Level of Desired Total Expenditures