What are the main components of spending that can cause changes in aggregate demand?
A)consumption, investment, government purchases, and net exports
B)investment, savings, replacement of depreciated equipment, and spending
C)consumption, savings, government purchases, and exports
D)consumption, investment, government purchases, and imports

Question

Quizplus · Accepted Answer

Consumption (C), investment (I), government purchases (G), and net exports (NX) are the four main components of spending that can cause changes in aggregate demand. Changes in any of these components can affect the level of overall spending in the economy and thus impact aggregate demand. for example, an increase in government purchases or investment can increase aggregate demand while a decrease in net exports can decrease aggregate demand.

What Are the Main Components of Spending That Can Cause