Match each definition to the appropriate component of aggregate demand Net Inves

Question

Match each definition to the appropriate component of aggregate demand Net Investment Spending Government Consumer Expenditure SpendingExports Definition The sum of the expenditures of business firms on new plant, equipment, and software and of households on new homes The goods and services purchased by all levels of government The total amount spent by consumers on nevly produced goods and services The difference between exports and imports Which of the following components represents the largest piece of aggregate demand? Net exports O Government spending O Consumer expenditure O Investment spending Which of the folloving components represents the smallest piece of aggregate demand O Consumer expenditure O Government spending Investment spending Net exports

Explanation / Answer

a. Investment spending
b. Government spending
c. Consumer expenditure
d. Net exports
e. Net exports
f. Consumer Expenditure

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