The Components of Aggregate Expenditure Are

question 111

Multiple Choice

The components of aggregate expenditure are

• A)consumption,actual investment,and net exports.
• B)actual investment,planned investment,and depreciation.
• C)consumption,planned investment,government purchases,and net exports.
• D)government purchases,imports,exports,and planned investment.

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Definitions:

Total Cost

Total cost is the complete amount of money it takes to produce a good or service, including both fixed and variable costs.

Short Run

A period in economics during which at least one input, such as plant size or capital, is fixed and cannot be changed.

Variable Costs

Variable costs are expenses that change in proportion to the activity or volume of business, such as materials and labor costs.

Fixed Inputs

Resources used in production that cannot be easily increased or decreased in a short period.