Question

Total spending in an economy is the sum of: personal consumption plus gross private investment plus government spending plus net exports. food consumption plus housing expenditures plus business expenditures plus government spending. durable goods plus nondurable goods plus services. imports minus exports.

Answer 1

The correct answer is personal consumption plus gross private investment plus government spending plus net exports.

Step-by-step explanation:

Total spending in an economy is the sum of personal consumption plus gross private investment plus government spending plus net exports.

Personal consumption expenditure is spending by consumers on goods and services. Gross private investment is the expenditure by the businesses.

Government spending is the expenses incurred by the government. Net exports are the amount spend on the purchase of goods and services from abroad.

All these together make total spending in an economy.