In a closed economy,aggregate demand is the sum of
A)consumer expenditure,actual investment spending,and government spending.
B)consumer expenditure,planned investment spending,and government spending.
C)consumer expenditure,actual investment spending,government spending,and net exports.
D)consumer expenditure,planned investment spending,government spending,and net exports.

Question

Quizplus · Accepted Answer

In a closed economy, there are no transactions with the outside world, meaning net exports are zero and not included in the aggregate demand formula. Aggregate demand consists of consumer expenditure, planned investment spending (not just actual, as it includes intentions for future investments), and government spending.

In a Closed Economy,aggregate Demand Is the Sum of