Why is the aggregate demand is only consumption and insvestmnet?
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Answered by
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....
See here for your answer ......
==================
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
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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