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The main component of aggregate demand is:
Individual consumption
Public consumption
Investment
All the above
- Individual Consumption: This is the spending by households and individuals on goods and services. It's usually the largest component of aggregate demand.
- Public Consumption: Refers to government spending on goods and services. This includes infrastructure, education, and healthcare.
- Investment: Involves spending on capital goods that will be used for future production. Businesses invest in new equipment and facilities.
- All the above: Aggregate demand is the total demand for all goods and services in an economy. It includes all three components: individual consumption, public consumption, and investment.
Therefore, the correct answer is:
- Option 4: All the above
.
By: santosh ProfileResourcesReport error
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