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3 years ago

The four components of aggregate expenditure are:

Business

2 answers:

ASHA 777 [7]3 years ago

5 0

Answer:

D. Consumption, investment, government purchases and net export

Explanation:

Aggregate expenditure is the sum of all the expenditures undertaken in the economy by the factors during a specific period of time.

Aggregate expenditure(AE) is total of consumption (C), investment (I), government expenditure (G) and net export (NX) that is export(X) minus import (M).

That is,

AE = C + I + G + NX.

Consumption: It refers to the total amount of money spent on goods and services by households.

Investment: This is the amount spent on capital expenditures by individuals and firms.

Government expenditure: Total amount of money spent by the government of a country.

Net export: This is the difference between export and import of a particular country.

FinnZ [79.3K]3 years ago

3 0

Answer:

D. Consumption, Investment, Government purchases and net exports

Explanation:

Aggregate expenditures refers to the present monetary value of all finished goods and services in the country at that particular point in time. It is the total sum of all the spending undertaken by economic factors in a country. It is expressed mathematically as

AE = C + I + G + NX

Where

C = Consumption

I = investment

G = government spending

NX = Net export

Consumption refers to the use or acquisition of goods and services by the household in the economy.

Investment refers to the purchase of goods not consumed today but rather are used in creating future wealth.

Government spending refers to the acquisition of goods and services by the government.

Net export refers to the difference between a country's total import and total export.

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3 years ago

A company uses the retail method to estimate inventories. The following information is for the first six months of the current y

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Answer:

The correct answer is $240,000.

Explanation:

According to the scenario, given data are as follows:

Beginning inventory at cost = $70,000

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According to the LIFO method.

Particulars Cost Retail Cost/Retail Ratio

Beginning inventory $70,000 $100,000 70%

Net purchases $270,000 $360,000 75%

Total Inventory $340,000 $460,000

Total sales $320,000

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$70,000 × 70% $70,000

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