ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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50%
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60%
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70%
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80%
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Detailed explanation-1: -The most important component of AD is consumer spending. This makes up around 60% of the AD figure. Therefore, factors effecting consumption such as interest rate changes can have a big impact on the overall AD value and therefore economic growth.
Detailed explanation-2: -United States Private Consumption accounted for 68.5 % of its Nominal GDP in Dec 2022, compared with a ratio of 68.1 % in the previous quarter. US Private Consumption contribution to Nominal GDP ratio is updated quarterly, available from Mar 1947 to Dec 2022, with an average share of 63.3 %.
Detailed explanation-3: -GDP by Expenditure Household consumption is the largest element of expenditure across the economy, accounting for 61% of the total in 2022.
Detailed explanation-4: -Households and NPISHs final consumption expenditure (% of GDP) in India was reported at 59.56% in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources.