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 spending on goods and services by the government. Transfer payments, taxation, borrowing, and saving are not components of aggregate demand as they do not involve direct spending on goods and services.

Which of the Following Is a Component of Aggregate Demand