Aggregate Planned Expenditure

question 90

Multiple Choice

Aggregate planned expenditure

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

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to a normal good.

Normal Good

A type of good for which demand increases as the income of individuals increases, indicating a direct relationship between income and demand.

Demand-Increasing Factor

Elements or conditions that lead to an increase in demand for a product or service, such as a rise in consumer income or a change in tastes.