What Are the Four Sources of Aggregate Demand

question 119

Multiple Choice

What are the four sources of aggregate demand?

• A) Consumption, private investment, taxes, and expenditures
• B) Consumption, private investment, wage increases, and government expenditures
• C) Consumption, private investment, expenditures, and net exports
• D) Consumption, private investment, government purchases, and net exports

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Definitions:

Wage Rates

The standardized amount of money paid for a specific quantity of labor or output, typically expressed as an amount per hour.

Autarky

An economic system where a country seeks to be self-sufficient and limit trade with foreign nations.

Consumer Surplus

The disparity between consumers' willingness to pay for a good or service and their actual payment amount.

Producer Surplus

The variance between the amount sellers are ready to accept for a commodity or service and what they actually earn from it.