The four components of the aggregate demand curve are:
A) consumption, inventories, government purchases and net exports.
B) consumption, inventories, government spending and exports.
C) land, labor, capital, and technology.
D) consumption, investment, government purchases and net exports.

Question

Quizplus · Accepted Answer

The four components of the aggregate demand curve are consumption, investment, government purchases, and net exports. Consumption represents the spending by households on goods and services, investment represents the spending on capital goods, government purchases represent government spending on goods and services, and net exports represent the difference between exports and imports.

The Four Components of the Aggregate Demand Curve Are