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State with Reason Whether You Agree Or Disagree with the Following Statement. Aggregate Demand Depends Only on the Consumption Expenditure.

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प्रश्न

State with reason whether you agree or disagree with the following statement.

Aggregate demand depends only on the consumption expenditure.

संक्षेप में उत्तर
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उत्तर

The above statement is incorrect. Apart from consumption expenditure, the aggregate demand also depends on the investment, government expenditure and net exports. It consists of the following components.

Demand by households - Private consumption expenditure (C)
Demand by firms - Private investment expenditure (I)
Demand by government - Government expenditure (G)
Demand by foreign sector- Net exports (X – M)
Where, X is exports and M is imports.
Thus,
AD = C + I + G + (X – M)

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अध्याय 10: Determinants of Aggregates - Exercise 5 [पृष्ठ ९४]

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मायकल वाझ Economics [English] 12 Standard HSC
अध्याय 10 Determinants of Aggregates
Exercise 5 | Q 1.1 | पृष्ठ ९४

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