The total expenditure in an economy is the aggregate of spending on _____.
A) consumption, investment, government purchases and net exports
B) consumption, savings, taxes and net exports
C) savings, investments, government purchases and imports
D) consumption, savings, government purchases and imports

Question

Quizplus · Accepted Answer

The total expenditure in an economy is indeed the aggregate of spending on consumption, investment, government purchases, and net exports. This is a fundamental concept in macroeconomics, reflecting the components of the Gross Domestic Product (GDP) in the expenditure approach.

The Total Expenditure in an Economy Is the Aggregate of Spending