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What does \(G\) represent in the expenditure equation?

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Question

What does \(G\) represent in the expenditure equation?

Options

  • Gross Fixed Investment

  • Government Indirect Taxes

  • Government Final Consumption and Investment Expenditure

  • Gross National Income

MCQ
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Solution

\(G\) represents Government Final Consumption and Investment Expenditure. It includes government consumption as well as investment expenditure.

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