In the circular flow diagram, aggregate expenditure includes

Question

Quizplus · Accepted Answer

Aggregate expenditure refers to the total amount of spending in the economy. It includes consumption expenditure (spending by households on goods and services), investment (spending by firms on capital goods), government expenditure (spending by the government on goods and services), and net exports (exports minus imports). Choice A includes all of these components of aggregate expenditure.

In the Circular Flow Diagram, Aggregate Expenditure Includes