The Formula for Aggregate Expenditure Is

question 233

Multiple Choice

The formula for aggregate expenditure is

• A)AE = C + I + G.
• B)AE = C + I + G - NX.
• C)AE = C + I + G + NX.
• D)AE = C + I + depreciation - NX.

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Definitions:

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life.

Book Value

The net value of an asset as recorded on the balance sheet, calculated as the original cost minus accumulated depreciation or amortization.

Gain Or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price, either positive (gain) or negative (loss).

Trade-In Allowance

The amount a seller allows a buyer for a fixed asset that is traded in for a similar asset.