What Is Aggregate Expenditure?
Aggregate Expenditure (AE) refers to the total expenditure of a country's economy on all final products and services, and consists of consumer expenditures, investment expenditures, government procurement expenditures, and net export expenditures. [1]
total expenses
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- Aggregate Expenditure (AE) refers to the total expenditure of a country's economy on all final products and services, and consists of consumer expenditures, investment expenditures, government procurement expenditures, and net export expenditures. [1]
- The total expenditure level in a certain period reflects the level of total demand in the society and economy. Consumption, investment, and government purchase expenditures constitute domestic demand, while net export expenditures are expenditures used to purchase domestic exports abroad, and constitute foreign demand. In Keynes' simple model of national income determination, total expenditure can be understood as total demand. [1]