The components of aggregate demand are
A)Consumption,government spending,net exports,and investment.
B)Consumption,exports,imports,and disposable income.
C)Consumption,inventory,government spending,and disposable income.
D)Exports,imports,investment,and disposable income.

Question

Quizplus · Accepted Answer

The four components of aggregate demand are consumption, government spending, net exports, and investment. These factors contribute to the overall demand for goods and services in an economy. Consumption is the largest component, representing the spending of households on goods and services. Government spending includes expenditures on goods and services by federal, state, and local governments. Net exports represent the difference between exports and imports, which can either add to or subtract from total demand. Finally, investment includes spending on capital goods like machinery and buildings, which can increase the productive capacity of an economy.

The Components of Aggregate Demand Are