Which Component of Aggregate Expenditure Is Neutral to Macroeconomic Changes

question 121

Multiple Choice

Which component of aggregate expenditure is neutral to macroeconomic changes?

• A) Consumption
• B) Investment
• C) Government
• D) Net exports

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Definitions:

Elastic Market Demand

Describes how sensitive the overall market demand for a good or service is to price changes.

Bureaucratic Decision-Making

The process where decisions are made within a hierarchical organizational structure, often involving formal rules and regulations.

Industry Presence

The extent of a company's or sector's footprint within a specific market or industry, measured through its market share, influence, or production capacity.

Barrier to Entry

Obstacles that make it difficult for new competitors to enter a market, such as capital requirements, technology challenges, and government policies; essentially a rephrasing of "Entry Barriers".