Which of the following is not a component of aggregate expenditure?

Question

investment

autonomous consumption

induced consumption

savings

Answer 1

Savings is not a component of aggregate expenditure. The components of aggregate expenditure typically include:

1. Consumption (which can be divided into autonomous and induced consumption)
2. Investment
3. Government Spending
4. Net Exports (exports minus imports)

Savings is more related to the income-expenditure relationship rather than an expenditure component itself.