Which of the following is not a component of Aggregate Demand?Choose one answer from the options below.ConsumptionInvestmentSavingNet ExportsGovernment Expenditure
Question
Which of the following is not a component of Aggregate Demand?Choose one answer from the options below.ConsumptionInvestmentSavingNet ExportsGovernment Expenditure
Solution
The component that is not part of Aggregate Demand from the options provided is Saving. Aggregate Demand is the total demand for all goods and services in an economy. It consists of Consumption, Investment, Government Expenditure, and Net Exports (Exports - Imports). Saving is not a component of Aggregate Demand because it represents a portion of income that is not used for consumption.
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