Consumption spending is about_____ of aggregate demand.
A)2/3
B)1/2
C)3/4
D)5/6

Question

Quizplus · Accepted Answer

Consumption spending is typically the largest component of aggregate demand in most economies. It represents the spending by households on goods and services, which is a significant contributor to overall economic activity. According to the most recent data from the US Bureau of Economic Analysis, consumption spending accounted for approximately 68% of US GDP in 2019, which is close to 2/3 of aggregate demand. Therefore, choice A) 2/3 is the best choice.

Consumption Spending Is About_____ of Aggregate Demand