Consumption:
A) is a major component of aggregate demand.
B) is negatively related to the national price level.
C) measures people's expenditures on real goods and services.
D) All of these are true.

Question

Quizplus · Accepted Answer

Consumption is a major component of aggregate demand, as it makes up a significant portion of the economy's total spending. It is not necessarily negatively related to the national price level, as it can depend on a variety of factors such as income levels, consumer confidence, and government policies. However, consumption does measure people's expenditures on real goods and services, such as buying groceries, going out to eat, or purchasing clothing. Therefore, D is the best choice as all three statements are true.