As a result of the drop in the oil price and resulting drop in oil production in 2015, many Alberta companies including local Tim Hortons cut production and employment.The total amount of spending in the economy is known as
A)deficit spending.
B)planned investment spending.
C)aggregate expenditure.
D)equilibrium spending.
E)total production.

Question

Quizplus · Accepted Answer

The total amount of spending in the economy is referred to as aggregate expenditure. This includes consumption, investment, government spending, and net exports. Deficit spending refers to a situation where the government spends more than it collects in revenue, planned investment spending refers to the amount of investment a company plans to make in a given period, equilibrium spending refers to the level of total spending where aggregate demand equals aggregate supply, and total production refers to the total output of goods and services in an economy. Thus, the most appropriate term for the total amount of spending in the economy is aggregate expenditure.

As a Result of the Drop in the Oil Price