ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not a determinant of aggregate demand?
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Change in Consumer Spending
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Change in Political Parties
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Change in Government Spending
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Change in investment Spending
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Explanation:
Detailed explanation-1: -Technology is not a determinant of aggregate demand because aggregate demand includes consumption expenditure (C), investment expenditure(I), net exports (NX) and government expenditure (G). Hence, option (B) is co…
Detailed explanation-2: -Aggregate demand is the sum of four components: consumption, investment, government spending, and net exports.
Detailed explanation-3: -What Factors Affect Aggregate Demand? Aggregate demand can be impacted by a few key economic factors. Rising or falling interest rates will affect decisions made by consumers and businesses. Rising household wealth increases aggregate demand while a decline usually leads to lower aggregate demand.
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