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Explain Aggregate demand and its components.

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Explain Aggregate demand and its components.

Posted by Atifa Aimen 6 years, 10 months ago

CBSE > Class 12 > Economics

1 answers

Ayush Rawat 6 years, 10 months ago

Aggregate demand refers to the total value of final goods and services which all the sector of an economy are planning to buy at a given level of income during a period of one accounting year COMPONENTS:- 1). Private consumption expenditure:- it refer to total expenditure by household on purchase of goods and services during an accounting year. 2). Investment expenditure:- it refers to total expenditure incurred by private firms on capital goods 3). Government expenditure:- it refers to total expenditure incurred by government on consumer goods and capital goods to satisfy the common needs of the economy 4).net export :- it is difference between export and import

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