The factors which affect the amounts that consumers, businesses, government, and foreigners wish to purchase at each price level are the:
A)wealth, interest rate, and foreign trade effects.
B)determinants of aggregate supply.
C)determinants of aggregate demand.
D)sole determinants of the equilibrium price level and the equilibrium real output.

Question

Quizplus · Accepted Answer

The determinants of aggregate demand are the factors which affect the amounts that consumers, businesses, government, and foreigners wish to purchase at each price level. These determinants include factors such as income, consumer and business confidence, interest rates, government policies, and foreign trade. The other options are either incorrect or provide insufficient information.

The Factors Which Affect the Amounts That Consumers, Businesses, Government