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Aggregate Expenditure

Authored by Katie Maris

Social Studies

11th - 12th Grade

Used 20+ times

Aggregate Expenditure
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14 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Aggregate expenditure is best defined as:

The total spending conducted by the 2 major sectors, households and firms.

The total spending conducted by foreign residents for domestic products.

The total expenditure on capital goods conducted by firms and households.

The total expenditure on final goods produced by the 4 major sectors of the economy.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

AE= C+I+G+(X-M). What does I stand for?

Investment

Interest rates

Inflation

Income

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the best definition of investment?

Putting money in houses, bank or shares to make more profit in the future.

Buying capital equipment to produce goods and services and adding to inventories.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The different categories of consumption are spending on durable products, non-durable products and services. Which is the biggest component of consumption?

Durable

Non-durable

Services

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Consumption generally accounts for around ____% of AE.

45%

50%

55%

60%

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the AE components are the most volatile?

Consumption

Investment

Government Spending

Net exports

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which two components are affected by a change in interest rates?

Consumption and government spending

Consumption and Investment

Investment and government spending

Net exports and government spending

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