Which factor can affect aggregate demand?(1 point)

The factor that can affect aggregate demand is consumption. Aggregate demand is influenced by various components, including consumption, investment, government spending, and net exports. While the quality of labor, stagnated wages, and production costs can impact aggregate supply and overall economic conditions, consumption directly influences aggregate demand levels.

Which factor can affect aggregate supply?(1 point)
Responses

increase in expenditures
increase in expenditures

decrease of net exports
decrease of net exports

consumption
consumption

investment

The factor that can affect aggregate supply is investment. Investment in capital goods, infrastructure, technology, and labor can increase the productive capacity of the economy, thus influencing aggregate supply. While expenditures and consumption mainly affect aggregate demand, and net exports are a component of demand, investment directly impacts the economy's ability to produce goods and services.