Which of the following is a component of aggregate demand?
A) transfer payments from government
B) taxation by government
C) purchases by government
D) borrowing by government

Question

Which of the following is a component of aggregate demand?  
A) transfer payments from government 
B) taxation by government 
C) purchases by government 
D) borrowing by government

Quizplus · Accepted Answer

Component of aggregate demand include consumption by households, investment by businesses, government purchases, and net exports. Transfer payments (A) and taxation (B) are not components of aggregate demand, while borrowing (D) does not directly affect aggregate demand.

Which of the Following Is a Component of Aggregate Demand