Which of the following is the correct classification for the aggregate demand model?

A. gross national product

B. microeconomics

C. federal reserve system

D. macroeconomics

The correct answer is (D)

Explanation:

The word aggregate itself explains a macroeconomic phenomenon as it is related to macroeconomic conditions. The aggregate demand model is developed by adding investment, consumption, government expenditures and net exports all these are macro factors that is why aggregate demand model is a macroeconomic model. The five components of aggregate demand are consumer spending, business spending, government spending, and exports minus imports.