What Is the Largest Component of Aggregate Expenditure

question 89

Multiple Choice

What is the largest component of aggregate expenditure?  

• A) government purchases 
• B) imports 
• C) consumption 
• D) investment

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Definitions:

Inflation-Adjusted

An adjective describing the modification of financial figures to reflect changes in the purchasing power of money, allowing for comparison over time.

Income Tax Revenue

The total sum of money collected by the government from individuals or businesses based on earned income and profits.

Elastic

Describes a situation in which the demand or supply for a good or service significantly changes in response to a change in price.