Select which of the following is not one of the components of Aggregate demand for final goods? |
Ex - ante consumption Ex - ante investment Ex - post consumption Government spending |
Ex - post consumption |
The answer is Ex - post consumption. Aggregate demand is the total demand for goods and services in an economy at a given price level. It is made up of four components:
Ex-post consumption is the actual consumption spending by households, which may differ from ex-ante consumption due to unexpected changes in income or wealth. Therefore, ex-post consumption is not a component of aggregate demand for final goods. |