The Four Components of the Aggregate Demand Curve Are

question 4

Multiple Choice

The four components of the aggregate demand curve are:

• A) consumption, inventories, government purchases and net exports.
• B) consumption, inventories, government spending and exports.
• C) land, labor, capital, and technology.
• D) consumption, investment, government purchases and net exports.

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Definitions:

Subjective Utility

A measure of the perceived value or benefit that an individual assigns to an outcome or choice.

Objective Value

The inherent worth of an item, task, or job, based on measurable and tangible factors as opposed to perceived or subjective value.

Decision-making Process

The cognitive process resulting in the selection of a belief or a course of action among several possible alternatives.

Availability Heuristic

An intuitive leap based on readily accessible examples in one's memory when considering a certain theme, notion, strategy, or judgement.