Economy, asked by jaryan3699, 1 year ago

Why is the aggregate demand is only consumption and insvestmnet?

Answers

Answered by brainlystargirl
3
Heya........

See here for your answer ......

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Before understanding the actual answer ,, you must know the meaning of these terms....

-- Consumption...
The total expenditure done by a person from his given income for the satisfaction of his wants....

-- Investment....
Rest of the income which is used for generating future income is termed as investment.....

-- Aggregate demand....
Total demand made by a consumer of all the goods and services with his given income....

Now,, look your actual answer.....

""" As I mentioned that,, aggregate demand in sum total of all the demands with his income , So, From the income a consumer can made consumption and investment....

""" So ,, total demand will be the sum of consumption + investment
Because income is using on both of these term as demand....

-- Be Brainly....

Answered by BrainlyGovind
0

Aggregate demand is the sum of four components: consumption, investment, government spending, and net exports. Consumption can change for a number of reasons, including movements in income, taxes, expectations about future income, and changes in wealth levels.

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