Which of the following is not a component of aggregate demand in a two-sector economy?
a)Net Exports
b)Government Expenditure
c)Consumption
d)Both (a) and (b)
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3
Answer:
the correct answer is option D .so both net exports and government expenditure.
Answered by
1
The correct answer is OPTION D: Both (a) and (b).
- In a two-sector economy, aggregate demand is made up of expenditures from both the consumer and production sectors.
- Government spending and net exports aren't included in the two-sector economy.
- Aggregate demand is the entire quantity of demand for all final goods and services produced in a given economy.
- The total amount of money exchanged for various commodities and services at a specific price level and time is referred to as aggregate demand.
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