Answer to Question #240625 in Macroeconomics for Anna

Question #240625

What is the island aggregate expenditure equation?


1
Expert's answer
2021-09-23T09:16:23-0400


The equation of aggregate expenditure

AE = C + I + G + X


Where

  • AE = Aggregate expenditure
  • C= Household consumption
  • I = Investment
  • G = Government spending
  • X = Net exports

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