The largest component of aggregate demand is
A)investment spending.
B)consumer spending.
C)government spending.
D)net exports.

Question

Quizplus · Accepted Answer

Consumer spending typically makes up the largest component of aggregate demand, as it includes all purchases of goods and services by households. Investment spending, government spending, and net exports are also important components, but they tend to be smaller overall.

The Largest Component of Aggregate Demand Is