Question : Which of the following is not a component of aggregate demand?
Option 1: Consumption expenditure
Option 2: Investment expenditure
Option 3: Government expenditure
Option 4: Savings
Answer (1)
11th Jan, 2024
Correct Answer: Savings
Solution : The correct answer is (d) Savings
Savings is not considered a component of aggregate demand. In the context of macroeconomics and aggregate demand, savings represent the portion of income that is not spent on consumption or investment. While savings play an important role in the economy, they do not directly contribute to aggregate demand, which is focused on the total spending or expenditure on goods and services within an economy.
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