CLEP Principles of Macroeconomics Exam Prep

Answer - C - When discussing the aggregate expenditure approach, economists generally include: investment, government spending, net exports, and consumption.

Key Takeaway: Consumption refers to the total money spent on household purchases of goods and services during a given year. Personal consumption expenditures are one of the components of the aggregate demand curve equation. This consumption by households and unattached individuals is a function of disposable income.