Consider the Equation: AE = C + I + G

Multiple Choice

Consider the equation: AE = C + I + G + (X - IM) .Which of the following statements correctly describes this sum?

A) This summation tells us total desired expenditures on domestically produced output.
B) It is a summation of actual expenditures and is equivalent to GDP.
C) This summation of planned expenditures is equal to actual nominal GDP.
D) It is a summation of planned expenditures and is always equal to real GDP.
E) It is a summation of the desired expenditures of domestic households,firms and government.