Question

what are the 4 examples of aggregate expenditure demand? example each

what are the 4 examples of aggregate expenditure demand? example each

Homework Answers

Answer #1

The four components of aggregate demand are:

  • Consumption: Consumption is the demand created by the household in the market, an example of it is John buying a computer for playing PUBG. it is for personal consumption.
  • Investmetn is the money invested by the firm in the market, an example of it is Boeing building new factory to build new parts for the planes.
  • Government expenditure is the purchase and expenditure done by the government, example defence expenditure.
  • Net exporrts i.e. total goods sold to the foreign nation, Walmart sold wine to India.   
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