Asked by Sapna Rathod on Jun 12, 2024

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Which of the following is not a component of aggregate expenditure?

A) Consumption expenditures
B) Investment
C) Imports
D) Rent
E) Government purchases

Aggregate Expenditure

The total spending on goods and services in an economy during a specific period, including consumer spending, investment, government spending, and net exports.

Consumption Expenditures

Spending by households on goods and services, excluding new housing.

  • Identify the components and calculations involved in determining aggregate expenditure.
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Verified Answer

DJ
Diana JiangJun 14, 2024
Final Answer :
D
Explanation :
Rent is not a component of aggregate expenditure. The components of aggregate expenditure are consumption expenditures, investment, government purchases, and net exports (which include exports minus imports).