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Question
In an open economy, Aggregate Demand is estimated as:
Options
private consumption expenditure + private investment expenditure + government expenditure + exports
private consumption expenditure + private investment expenditure + government expenditure + imports
private investment expenditure + government expenditure + net exports
private consumption expenditure + private investment expenditure + government expenditure + net exports
MCQ
Solution
private consumption expenditure + private investment expenditure + government expenditure + net exports
Explanation:
The value of final products and services that all sectors of an economy want to purchase within a year is referred to as aggregate demand.
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