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13 December, 22:07

What four types of demand are included in agreggate demand

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  1. 13 December, 22:26
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    The answer is consumption demand, investment demand, government demand and net export.

    Explanation:

    Aggregate demand (AD) is usually defined as total demand for goods and services in one economy. It is the sum of consumption demand (C), investment demand (I), government demand (G) and net export (NE) which can be presented with the equation: AD = C + I + G + NE.

    Consumption demand is spending made by households.

    Investment demand is spending on capital made by companies and firms.

    Government demand is spending such as salaries, pensions, social benefits and spending on buildings, roads, schools ...

    Net export is a difference between export and import. Exports are goods made in one country and sold in another, while the imports are goods from abroad bought in domestic country.

    Increase in any of these demands increases the aggregate demand.
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