Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

Which of the following is a component of aggregate demand?

Options:

Foreign currency

Consumption

Rate of interest

None of the above

Correct Answer:

Consumption

Explanation:

In a 4 sector model economy, following components are included in aggregate demand/aggregate expenditure:

  1. Private final consumption expenditure
  2. Government final consumption expenditure
  3. Investment expenditure
  4. Net exports