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
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.
Question : In an open economy, aggregate demand is estimated as:
Question : Which of the following is an element of aggregate demand?
Question : The equilibrium in the aggregate market occurs when:
Question : In the aggregate expenditure model, equilibrium occurs when aggregate expenditure is equal to:
Question : In the Keynesian theory of income determination, equilibrium income is achieved when:
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