Aggregate demand includes the demand for all goods and services in an economy EXCEPT the goods and service that are:
A) purchased by the government.
B) purchased by firms.
C) exported to other countries.
D) imported from other countries.

Question

Quizplus · Accepted Answer

Aggregate demand includes all goods and services produced domestically that are purchased by the government (A), firms (B), and those exported to other countries (C). However, it excludes goods and services that are imported from other countries (D) because these do not contribute to the domestic economy's output.

Aggregate Demand Includes the Demand for All Goods and Services