Trusted by millions of Kenyans
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

Explain the main components of aggregate demand

Explain the main components of aggregate demand

Answers

Lydia
Aggregate demand has 4 basic components:
1 Consumption (C): Spending by households on goods and services.
2 Investment (I): Spending by fi rms on investment goods both fixed capital and increases in stocks
3 Government spending (G): This includes current spending such as wages and office supplies. It also includes spending by the government on investment goods such as new schools and hospitals. It does not
include transfer payments such as welfare payments
4 Exports minus imports (X-M): This is foreign spending on UK produced goods and services (X) less UK spending on foreign produced goods and services (M).
lydiajane74 answered the question on July 4, 2018 at 08:09

Answer Attachments

Next: Discuss the formation of Christian Bible

Previous: Analyse why an economy’s aggregate demand curve slopes downwards from left to right.

View more Economics Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions