What do you mean by aggregate demand? Mention its components?

1.	What do you mean by aggregate demand? Mention its components?
Answer» 1. The aggregate demand is the amount of money which entrepreneurs expect to get by selling the output produced by the number of labourers employed. 2. Therefore, it is the expected income or revenue from the sale of output at different levels of employment. 3. Aggregate demand has the following four components: 1. Consumption demand 2. InvestmenTdemand 3. Government expenditure and 4. Net Export (export – import)

Answer»

1. The aggregate demand is the amount of money which entrepreneurs expect to get by selling the output produced by the number of labourers employed.

2. Therefore, it is the expected income or revenue from the sale of output at different levels of employment.

3. Aggregate demand has the following four components:

1. Consumption demand

2. InvestmenTdemand

3. Government expenditure and

4. Net Export (export – import)

Discussion