Aggregate Planned Expenditure

question 442

Multiple Choice

Aggregate planned expenditure

• A) equals actual aggregate expenditure at the equilibrium level of real GDP.
• B) is always less than actual aggregate expenditure.
• C) always equals actual aggregate expenditure.
• D) is always greater than actual aggregate expenditure.

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Definitions:

Disposable Income

The reserve of funds households possess for spending and saving after income tax payments.

Savings

The portion of disposable income not spent on consumption of goods and services, set aside for future use.

Disposable Income

Net financial resources for households to allocate towards spending and savings after income taxation.

Savings

The portion of income not spent on consumption of goods and services, often put aside for future use or investment.