Which of the Following Is a Component of Aggregate Demand

question 129

Multiple Choice

Which of the following is a component of aggregate demand?

• A) transfer payments from the government
• B) taxation by the government
• C) purchases by the government
• D) borrowing by the government
• E) saving by consumers

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Definitions:

Federal Government Budget

A financial statement presenting the government's proposed revenues and spending for a financial year.

Biennial Budget

A budget planned and set for a two-year period, often employed by government entities to manage expenses and revenues more efficiently.

Discretionary Fiscal Policy

Government policy that involves adjusting its spending levels and tax rates to monitor and influence a nation's economy.

Cabinet Members

High-ranking government officials, typically heads of departments or agencies, who serve as advisors to the President or head of state.