Questions: The largest component of aggregate expenditure is Multiple Choice government purchases. exports. investment. consumption.

The answer is consumption.

Government purchases are a significant part of aggregate expenditure, but they are not the largest component. They include spending on goods and services that the government consumes for providing public services and investments in infrastructure.

Exports contribute to aggregate expenditure by adding to the total demand for a country's goods and services. However, they are not the largest component of aggregate expenditure.

Investment includes business expenditures on capital goods, residential construction, and changes in inventories. While important, investment is not the largest component of aggregate expenditure.

Consumption is the largest component of aggregate expenditure. It includes all private expenditures by households on goods and services. This category typically accounts for the majority of total spending in an economy, making it the largest component of aggregate expenditure.