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The formula for aggregate expenditure is AE = C + I + G + (X - M), where AE is aggregate expenditure, C is consumption, I is investments, G is government spending, and (X - M) is net exports. This equation helps you analyze spending in the economy clearly. Gaining comfort with this formula will strengthen your grasp of the Principles Of Macroeconomics ECON 202 Quiz III Aggregate Expenditures, Multipliers And Aggregate.
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