The components of aggregate demand are:
A) consumption, investment, government and exports
B) consumption, investment, government and imports
C) consumption, investment, government and net exports
D) consumption, investment, and net exports, since only private expenditures are included

Question

Quizplus · Accepted Answer

Aggregate demand is the total amount of goods and services that will be demanded at all possible price levels. It is comprised of four components: consumption (C), investment (I), government spending (G), and net exports (NX), which is the difference between exports and imports. Therefore, option C, which lists consumption, investment, government, and net exports, is the correct answer.

The Components of Aggregate Demand Are