The four components of aggregate expenditure (AE) are:
A) consumption, investment, exports, and imports.
B) consumption, investment, government, and capital spending.
C) consumption, investment, government, and net export spending.
D) consumption, internet, government, and capital spending.

Question

Quizplus · Accepted Answer

The four components of aggregate expenditure are consumption, investment, government, and net export spending. Consumption refers to the amount spent by households on goods and services. Investment refers to the amount spent by firms on capital goods such as machinery, equipment, and buildings. Government refers to the amount spent by the government on goods and services. Net export spending refers to the difference between exports and imports, where exports are the amount of goods and services sold to other countries and imports are the amount of goods and services bought from other countries.

The Four Components of Aggregate Expenditure (AE) Are