In a simplified economic model with only households and firms, total planned spending is calculated as the sum of household consumption spending and firms' planned investment spending. If total planned spending in this economy is $1,000 billion, which of the following scenarios is inconsistent with this level of total spending?
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In a simplified economy with no government or international trade, households plan to spend $800 billion on goods and services, and firms plan to spend $200 billion on new machinery and buildings. What is the total planned spending, or aggregate demand, in this economy?