Final answer:
The government influences consumption through government transfers and spending. These actions can increase household income and stimulate spending.
Step-by-step explanation:
The government influences the consumption component of planned aggregate expenditures through various means. One way is through government transfers, which can increase household disposable income. When the government provides financial assistance to individuals in the form of welfare, unemployment benefits, or tax credits, it can boost their purchasing power and stimulate consumption.
Additionally, government spending plays a role in influencing consumption. When the government invests in infrastructure projects, it creates jobs and income for individuals, which can result in increased spending on goods and services.
Overall, government policies and actions can directly or indirectly impact consumption behavior, either by affecting disposable income or by creating an environment that encourages or discourages spending.