The Bulk of Aggregate Demand in the United States Consists

question 147

Multiple Choice

The bulk of aggregate demand in the United States consists of

• A) consumption.
• B) investment.
• C) government spending.
• D) net exports.

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Definitions:

The Classicals

A group of economists in the 18th and 19th centuries, including Adam Smith and David Ricardo, who developed theories about how economies function.

Price Level

The overall level of prices for goods and services in an economy at a specific point in time.

Aggregate Supply Curve

Curve showing the level of real GDP produced at different price levels during a time period, ceteris paribus.

Maximum Output Level

The highest quantity of a good or service that can be produced efficiently with available resources and technology.