Question
Economics Question on Aggregate Demand and Supply
Aggregate demand for final goods consists of:
A
Government spending
B
Imports
C
Savings
D
Taxes
Answer
Government spending
Explanation
Solution
Aggregate demand represents the total demand for final goods and services in the economy, including consumption, investment, government spending, and net exports (exports minus imports). Imports, savings, and taxes are considered leakages, not part of aggregate demand directly. Therefore, government spending is the correct answer.