how-does-the-removal-of-government-purchases-and-net-exports-simplify-the-aggreg

Question

How does the removal of government purchases and net exports simplify the aggregate expenditures model?

Accepted Answer

It reduces the model to only consumption and investment.

Answer

It increases the complexity of the model.

Answer

It makes the model dependent on international trade.

Answer

It eliminates the need for a consumption function.