The formula for aggregate expenditure is
A)AE = C + I + G.
B)AE = C + I + G - NX.
C)AE = C + I + G + NX.
D)AE = C + I + depreciation - NX.
E)AE = C + I + G + NX - foreign direct investment.

Question

Quizplus · Accepted Answer

Aggregate expenditure (AE) is the total amount spent on the nation's goods and services and is calculated as the sum of consumer spending (C), investment (I), government spending (G), and net exports (NX), which is exports minus imports. Thus, AE = C + I + G + NX.

The Formula for Aggregate Expenditure Is