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The four components of aggregate expenditure are Multiple Choice spending on domestic goods, domestic services, foreign goods, and foreign services. spending on durable goods, inventory investment, government debt, and net exports. consumption, investment, government transfers, and net interest. consumption, investment, government purchases, and net exports.

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The expenditure method is one method to calculate the GDP that has four components. The first component is the private consumption that is done by the households. The second component is the private investments that is done by the firms. The third component is done by government as spending and last is the export, minus of import. These four components summed together, are called as net expenditure.

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