Aggregate demand can be defined as: A. the total spending by all consumers, busi
ID: 1227413 • Letter: A
Question
Aggregate demand can be defined as:
A. the total spending by all consumers, business firms, government agencies, and foreigners in the United States.
B. the total amounts that all consumers, business firms, government agencies, and foreigners wish to spend on all final goods and services at various price levels.
C. the total spending by consumers, business firms, government agencies and foreigners at a given price level.
D. the total spending by consumers, business firms, and government agencies on final goods and services.
Explanation / Answer
Option B is correct.
Aggregate demand have components as - consumption, investment, government spending and net exports which depicts the demand by households, business firms, government agencies and foreigners, at a given point of time and at all possible price levels.