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In the closed economy the ex ante aggregate demand for final goods is the sum total of: |
Ex ante consumption expenditure and ex post investment expenditure on such goods. Ex ante consumption expenditure and ex ante investment expenditure on such goods. Ex post consumption expenditure and ex post investment expenditure on such goods Ex post consumption expenditure and ex ante investment expenditure on such goods |
Ex ante consumption expenditure and ex ante investment expenditure on such goods. |
The correct answer is Option (2) → Ex ante consumption expenditure and ex ante investment expenditure on such goods. In an economy without a government, the ex ante aggregate demand for final goods is the sum total of the ex ante consumption expenditure and ex ante investment expenditure on such goods, viz. AD = C + I. |
