Consumption Is an Important Element of Aggregate Demand Because It

question 14

Multiple Choice

Consumption is an important element of aggregate demand because it

• A)is the most volatile component of GDP
• B)accounts for roughly 70 percent of GDP
• C)is very interest sensitive
• D)is greatly affected by stock market activity
• E)all of the above

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Definitions:

Elastic

A material or property that allows an object to resume its normal shape spontaneously after being stretched or compressed.

Nitrates

Inorganic compounds made of one nitrogen atom and three oxygen atoms that are commonly found in fertilizers and can be naturally present in water and soil.

Sedentary Lifestyle

A lifestyle characterized by a significant amount of sitting or inactivity, which can lead to health issues.

Intercalated Discs

The junctions between cells in cardiac muscle; contain gap junctions.