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Question

Which of these is a component of Aggregate demand ______________.

A
Private consumption expenditure
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B
Investment expenditure
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C
Government expenditure
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D
All of these
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Solution

The correct option is D All of these
The various components of expenditure method are:

National income by expenditure method = C+I+G+ (X-M) where

C= Private Consumption expenditure by households

I= Gross Domestic Investment expenditure

G= Government Final consumption and investment expenditure

(X-M)= Net export ( Export - Import)


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