In a macroeconomic model without foreign trade or a government aggregate demand is the sum of ?
Correct answer: C. personal consumption and private investment
- A. personal saving and private investment
- B. personal saving and personal consumption
- C. personal consumption and private investment
- D. None of the above
Explanation
In an economy with no government or foreign trade, aggregate demand has only household consumption and private investment. Thus it is C + I.
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