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23 October, 19:51

List and briefly define the 4 components of a nation's demand for goods and services

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  1. 23 October, 22:53
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    C, I, G, NX

    Explanation:

    The components of nation's demand for goods & services is reflected in Aggregate Demand. AD is the total value of goods & services all the consumers are planning to buy during a period.

    AD denotes consumption components by 4 sectors of an Economy : Households, Firms, Government, Rest of World.

    All 4 sectors form components of AD = Consumption Expenditure, Investment, Government Expenditure, Net Exports (Exports - Imports) by the 4 above sectors respectively.
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