The largest component of aggregate expenditure is
A) consumption spending
B) investment spending
C) government purchases
D) net exports
E) a virtual tie between consumption spending and government purchases

Question

Quizplus · Accepted Answer

Consumption spending typically makes up over 60% of total aggregate expenditure in the United States, making it the largest component. Investment spending, government purchases, and net exports make up smaller portions of the total. While government purchases can be significant, they are not typically as large as consumption spending.

The Largest Component of Aggregate Expenditure Is