Which of the following are components of aggregate demand?

(A) Autonomous Investment
(B) Autonomous Consumption
(C) Induced investment
(D) Induced consumption

Choose the correct answer from the options given below:

(A), (B), (C) and (D)

The correct answer is Option (3) → (A), (B), (C) and (D)

Aggregate Demand (AD) refers to the total planned expenditure on final goods and services in an economy at a given level of income. It consists of both autonomous and induced components of consumption and investment.

• (A) Autonomous Investment: Investment independent of income levels (e.g., government or infrastructure investment).

• (B) Autonomous Consumption: Basic consumption that occurs even when income is zero.

• (C) Induced Investment: Investment that increases as income or output rises.

• (D) Induced Consumption: Consumption that rises with higher income.

Hence, all four components — autonomous and induced, both in consumption and investment — form part of aggregate demand.