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Lapatulllka [165]
3 years ago
14

What is the key idea in the aggregate expenditure macroeconomic​ model? The key idea in the aggregate expenditure model is that

Business
1 answer:
guajiro [1.7K]3 years ago
6 0

Answer:

A) in any particular​ year, the level of GDP is determined mainly by the level of aggregate expenditure.

Explanation:

The formula for calculating the aggregate expenditure (AE) of an economy is the same used to calculate the gross domestic product:

Aggregate expenditures = consumption + investment + government + net exports (exports - imports)

The main difference between the GDP ans AE is that AE measures the planned consumption, the planned investment, the planned government expenses and the planned net exports.

he equation is: AE = C + I + G + NX. The aggregate expenditure determines the total amount that firms and households plan to spend on goods and services at each level of income.

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