Which components of aggregate expenditure change as a result of real GDP changing?
A) Consumption expenditure and imports
B) Consumption expenditure, investment and exports
C) Consumption expenditure and investment
D) Consumption expenditure, investment, and government expenditure on goods and services
E) Consumption expenditure and government expenditure on goods and services

Question

Quizplus · Accepted Answer

Consumption expenditure and imports typically change as a result of changes in real GDP. Consumption expenditure changes because as people's incomes change with the economy, they alter their spending habits. Imports change because as a country's economy grows and people have more income, they tend to buy more imported goods.

Which Components of Aggregate Expenditure Change as a Result of Real