ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Consumption Spending (C) Consumption spending (C) is the largest component of an economy’s aggregate demand, and it refers to the total spending of individuals and households on goods and services in the economy.

Detailed explanation-2: -What Is Aggregate Demand? Aggregate demand is a term used in macroeconomics to describe the total demand for goods produced domestically, including consumer goods, services, and capital goods.

Detailed explanation-3: -Aggregate demand is the amount of total spending on domestic goods and services in an economy. The downward-sloping aggregate demand curve shows the relationship between the price level for outputs and the quantity of total spending in the economy.

Detailed explanation-4: -What Is Aggregate Demand? Aggregate demand is a measurement of the total amount of demand for all finished goods and services produced in an economy. Aggregate demand is commonly expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time.