Aggregate demand includes

Question

a. the quantity of goods and services households and firms want to buy, but not the quantity of goods and services the government wants to buy.
b. the quantity of goods and services the government, households, firms, and customers abroad want to buy.
c. the quantity of goods and service the government wants to buy, but not the quantity of goods and services households, firms, or customers abroad want to buy.
d. neither the quantity of goods and services the government, households, nor firms want to buy nor the quantity of goods and services customers abroad want to buy.

Answer 1

The correct answer is:

b. the quantity of goods and services the government, households, firms, and customers abroad want to buy.

Aggregate demand is a measure of the total demand for goods and services within an economy at a given overall price level and in a given time period. It typically includes consumption by households, investment by firms, government spending, and net exports (exports minus imports, which account for demand from abroad).