Aggregate demand is defined as the total spending
A)of all consumers, business firms, government agencies, and foreigners on final goods and services produced in the United States.
B)by all consumers, business firms, government agencies, and foreigners in the United States.
C)consumers, businesses, government agencies, and foreigners wish to make in one year.
D)of consumers, businesses, and government agencies on final output.

Question

Quizplus · Accepted Answer

Aggregate demand is the total spending of all consumers, business firms, government agencies, and foreigners on final goods and services produced in the United States. B is incorrect because it doesn't specify that the spending needs to be on goods and services produced in the United States. C is incorrect because it refers to wishes rather than actual spending. D is incorrect because it doesn't include spending by foreigners.

Aggregate Demand Is Defined as the Total Spending