Which of the following lists all the components that are included in aggregate demand?
A)Consumption,government spending,net exports,and investment.
B)Government spending,saving,consumption,and investment.
C)Investment,imports,exports,consumption,and taxes.
D)Net exports,government spending,consumption,and transfer payments.

Question

Quizplus · Accepted Answer

Aggregate demand consists of consumption spending, government spending, net exports, and investment spending. Option A is the only choice that includes all four components of aggregate demand. Option B includes saving, which is not a component of aggregate demand. Option C includes taxes, which are not a component of aggregate demand, and options C and D are missing crucial components such as government spending and net exports.

Which of the Following Lists All the Components That Are