As a result of slow economic growth in 2011,many companies including Cisco Systems,Lockheed Martin,and Cracker Barrel Old Country Store cut production and employment as a result of the sluggish growth in the total amount of spending in the economy.The total amount of spending in the economy is known as
A) deficit spending.
B) planned investment spending.
C) aggregate expenditure.
D) equilibrium spending.

Question

Quizplus · Accepted Answer

Aggregate expenditure refers to the total amount of spending in the economy, including consumption expenditure, investment expenditure, government expenditure, and net exports. Slow economic growth in 2011 led many companies to cut production and employment due to the sluggish growth in aggregate expenditure. Deficit spending refers to a situation where the government spends more money than it collects in revenue. Planned investment spending refers to the amount of money that companies plan to spend on new investments. Equilibrium spending refers to the level of aggregate expenditure that is consistent with the economy being in a state of equilibrium.

As a Result of Slow Economic Growth in 2011,many Companies