Practice Quiz

CLEP Principles of Macroeconomics Exam Prep

Category - Macroeconomics

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When discussing the aggregate expenditure approach, economists generally include four distinct types of spending: investment, government spending, net exports, and ____________.
  1. Peak
  2. Double counting
  3. Consumption
  4. Medicare
Explanation
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.
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