National expenditure includes
- AConsumption expenditure
- BInvestment expenditure
- CGovernment expenditure
- DAll of the above
Solution & Step-by-step Explanation
National expenditure represents the total aggregate spending in an economy. It is mathematically calculated using the expenditure method equation for National Income:
where is private consumption expenditure, is investment expenditure, is government spending, and represents net exports. Therefore, consumption, investment, and government expenditure are all vital parts of national expenditure.
where is private consumption expenditure, is investment expenditure, is government spending, and represents net exports. Therefore, consumption, investment, and government expenditure are all vital parts of national expenditure.