Which of the following is not a component of aggregate demand?

The correct answer is a) sales tax receipts.

Aggregate demand is composed of four main components: consumption, investment, government spending, and net exports. Each of these elements contributes to the overall demand for goods and services in an economy.

Consumption refers to the total amount spent by households on goods and services.

Investment includes spending on capital goods that will be used for future production.

Government spending consists of expenditures by the government on goods and services.

Net exports are calculated as the value of a country’s exports minus its imports.

Sales tax receipts, on the other hand, are a form of revenue collected by the government and do not directly contribute to the total demand for goods and services. They are a financial mechanism rather than a component of demand itself, making them the correct answer to this question.

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