The major categories of expenditures in the economy are:

Question

Quizplus · Accepted Answer

The best choice is D as it includes all the major categories of expenditures in the economy - consumption, gross investment, government purchases, and net exports. Consumption refers to the spending by households on goods and services, whereas gross investment includes business spending on new equipment, buildings, and inventories. Government purchases refer to government spending on goods and services. Finally, net exports include exports minus imports, which represent spending by foreign countries on goods and services produced domestically.

The Major Categories of Expenditures in the Economy Are