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The components of Aggregate Demand are: Select one: a. Consumption spending, Investment spending, government spending and...

The components of Aggregate Demand are:

Select one:

a. Consumption spending, Investment spending, government spending and spending on exports minus imports

b. Consumption spending and investment spending only

c. Investment spending and government spending only

d. Only spending on exports minus imports and consumption spending

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Answer #1

Answer

Option a

a. Consumption spending, Investment spending, government spending and spending on exports minus imports

Component of Ad is consumption(C), investment(I), government spending(G), export (X) minus import.(M)

The C, I, G, X are positively related to the AD and imports are inversely related to AD.

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