Estimation and behaviour of components of …
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Meghna Thapar 5 years, 5 months ago
The four components of aggregate expenditure are household consumption, denoted by “C,” plus investments (“I”), plus government spending, plus net exports (“NX”). It measures the aggregate spending activities of the overall economy and is also referred to as Gross Domestic Product (GDP). There are four components of Aggregate Demand (AD); Consumption (C), Investment (I), Government Spending (G) and Net Exports (X-M). Aggregate Demand shows the relationship between Real GNP and the Price Level.
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