In the AD/AS model, the aggregate demand for goods and services is composed of the purchases made by
A) households and foreigners (net exports).
B) businesses, bondholders, and foreigners (net exports).
C) businesses and governments.
D) consumers, investors, governments, and foreigners (net exports).

Question

Quizplus · Accepted Answer

The AD/AS model considers the aggregate demand for goods and services, which is composed of the purchases made by consumers, investors, governments, and foreigners (net exports) as well. Therefore, option D is the best choice.

In the AD/AS Model, the Aggregate Demand for Goods and Services