In a Private Closed Economy, the Two Components of Aggregate

question 130

Multiple Choice

In a private closed economy, the two components of aggregate expenditures are:

• A) Consumption and government spending
• B) Consumption and net exports
• C) Consumption, investment, and net exports
• D) Consumption and investment

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Definitions:

Low-Income Consumer

Consumers with limited financial resources, influencing their purchasing behavior and product choices.

Material Goods

Physical items produced for consumer purchase and use, as opposed to services or digital products.

Experiences

The process of being directly involved in and affected by events or activities, leading to the acquisition of knowledge or skills.

Behavioural Economics

A field of study that analyzes the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.