For a private closed economy aggregate expenditures consist of:
A)C + Ig.
B)C - Ig.
C)C + S.
D)C - S.

Name: For a private closed economy aggregate expenditures consist of: A)C + Ig. B)C - Ig. C)C + S. D)C - S.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a closed private economy, aggregate expenditures are equal to consumption (C) plus planned investment (Ig). This is because there is no government spending or international trade to be factored in. Therefore, the correct answer is A, which represents C + Ig.

For a Private Closed Economy Aggregate Expenditures Consist Of