Correct Answer: Government expenditure

Solution : The correct answer is (c) Government expenditure

Government expenditure is an element of aggregate demand. Aggregate demand represents the total demand for goods and services in an economy over a specific period. It is the sum of consumption expenditure, investment expenditure, government expenditure, and net exports.

Government expenditure refers to the spending by the government on public goods and services, such as infrastructure, education, healthcare, defense, and welfare programs. It includes both consumption expenditure by the government (e.g., salaries of public employees) and investment expenditure (e.g., spending on infrastructure projects).