Question : Aggregate demand in a two sector model involves-
Option 1: Consumption and investment
Option 2: Investment and net exports
Option 3: Net exports and consumption
Option 4: Consumption and government
Answer (1)
25th Jan, 2024
Correct Answer:
Consumption and investment
Solution :
Aggregate demand is a function of consumption expenditure and investment expenditure in a two sector model.
Hence, Option A is correct.
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