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    Components of Aggregate Expenditure

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    List the components of aggregate expenditure. Choose two of these components, and explain the composition of each.

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    https://brainmass.com/economics/trade-agreements/components-aggregate-expenditure-409658

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    The Aggregate Expenditures Equation

    The following equation is commonly used to summarize the four components that make up aggregate expenditures:

    AE = C + I + G + (X - M)

    The notation used here is relatively straight forward. AE is aggregate expenditures; C is consumption expenditures by the household sector; I is investment expenditures on capital goods by the business sector; G is government ...

    Solution Summary

    This solutions discusses the components of Aggregate Expenditure (AE) based on the formula:
    AE = C + I + G + (X - M)

    $2.19