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
E)saving by consumers

Question

Quizplus · Accepted Answer

Purchases by government are a component of aggregate demand, as they represent the amount of goods and services the government buys from firms, which contributes to overall demand in the economy. Transfer payments, taxation, borrowing, and saving are all factors that can affect aggregate demand, but they are not direct components of it.

Which of the Following Is a Component of Aggregate Demand