For the purposes of the Keynesian cross, planned expenditure consists of:

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In the Keynesian cross framework, understanding what constitutes planned expenditure requires identifying the components that directly contribute to aggregate demand in the model.
Option b: 'planned government spending.' This is incomplete because government spending is only one part of total planned expenditure. The model also includes consumption and investment, so focusing solely on G leaves out other essential components.
Option a: 'planned investment.' While planned investment is a key part of aggregate demand, it is not the sole component. The standard Keynesian cross requires adding consumption and government spending as well to determine total planned expenditure.
Option c: 'planned investment and government spending.' This choice includes two major components but still omits consumption, which is a primary driver of planned expenditure in the simple Keynesian framework. Without consumption, the measure is not the full planned expenditure.
Option d: 'planned investment, government spending, and consumption expenditures.' This option correctly lists all three components that make up planned expenditure in the Keynesian cross: I (planned investment), G (government spending), and C (consumption). It captures the complete sum that determines aggregate demand in the basic model, typically expressed as E = C + I + G. It does not include net exports in the simplest closed-economy version, and that aligns with the standard formulation used in introductory Keynesian analysis.

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For the purposes of the Keynesian cross, planned expenditure consists of:

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Calculate the sum of saving and taxes below based on the following equations that make up aggregate expenditure. Consumption: C = 2,700 + 0.9Y Planned investment: I = 3,000 Government purchases: G = 1,100 Net exports: NX = -300 Equilibrium condition: Y = C + I + G + NX

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