Gross Domestic Product Quick Check

Question

5 of 55 of 5 Items
Question
Aggregate demand is traditionally calculated by summing _____.(1 point)
Responses

consumption, investment, government spending, and net exports
consumption, investment, government spending, and net exports

consumption, investment, government spending, net exports, and inflation
consumption, investment, government spending, net exports, and inflation

consumption, investment, and government spending
consumption, investment, and government spending

consumption, investment, and savings
consumption, investment, and savings
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Answer 1

The correct response is:

consumption, investment, government spending, and net exports

This captures the components of aggregate demand, which is typically represented by the formula: $AD=C+I+G+(X-M)$, where $C$ is consumption, $I$ is investment, $G$ is government spending, and $(X-M)$ is net exports.