The components of aggregate demand (AD) include:Question 26Answera.Consumption, investment, government spending, and net exportsb.Savings, loans, credit, and interest ratesc.Imports, exports, tariffs, and quotasd.Wages, prices, and production costs
Question
The components of aggregate demand (AD) include:Question 26Answera.Consumption, investment, government spending, and net exportsb.Savings, loans, credit, and interest ratesc.Imports, exports, tariffs, and quotasd.Wages, prices, and production costs
Solution
The components of aggregate demand (AD) include:
a. Consumption, investment, government spending, and net exports
This is because aggregate demand is the total demand for all goods and services in an economy. This includes the demand from households (consumption), businesses (investment), the government (government spending), and foreign entities (net exports, which is exports minus imports).
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