Which of the following is the basic equation underlying aggregate expenditures?
A) MV = PQ
B) AS = AD
C) Saving = Income ?Consumption
D) $C _ { a } + I _ { g } + X _ { n } + G = G D P$

Question

Quizplus · Accepted Answer

The basic equation underlying aggregate expenditures is D) C a + I g + X n + G = GDP, where C a represents consumption by households, I g represents investment by businesses and governments, X n represents net exports (exports minus imports), and G represents government spending. This equation shows that the total spending in an economy (aggregate expenditures) is equal to its gross domestic product (GDP).

Which of the Following Is the Basic Equation Underlying Aggregate Ca+Ig+Xn+G=GDPC _ { a } + I _ { g } + X _ { n } + G = G D PCa​+Ig​+Xn​+G=GDP

Which of the Following Is the Basic Equation Underlying Aggregate $C _ { a } + I _ { g } + X _ { n } + G = G D P$