On a simple economy with no government, aggregate expenditure is consumption plus investment.
Hence, option C is correct.
What do you mean by Aggregate expenditure and consumption?
Aggregate expenditure can be defined as a macroeconomic tool which is used to measure the total amount of economic activity or total output within a country.
It is one of the methods to calculate GDP.
Consumption on the other hand requires the individual to actually consume/ use something.
The main types of consumption include convenience, shopping, specialty, and unsought consumer goods.
Hence, On a simple economy with no government, aggregate expenditure is consumption plus investment.
Hence, option C is correct.
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