Question 3
MediumOriginal questionMatch each component of aggregate demand with an example.
| List I | List II |
|---|---|
| A. Consumption (C) | I. The government builds a highway |
| B. Investment (I) | II. A family buys clothes |
| C. Government spending (G) | III. Foreigners buy Indian tea, minus India's purchases from abroad |
| D. Net exports (X − M) | IV. A firm buys new machines |
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
Each sector's spending is one component of AD.
- Concept
- Components of AD
- Typical timeTypical
- 90 s
- Your timeYours
- —
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