Final answer:
The student's question focuses on aggregate demand within a closed economy void of government input, which relies solely on consumption and investment to drive demand.
Step-by-step explanation:
The question being asked pertains to the components of aggregate demand in an economy, specifically examining scenarios where the economy is closed and there is no government influence.
Understanding the Components of Aggregate Demand
Aggregate demand consists of four main components: consumption spending (C), investment spending (I), government spending (G), and spending on net exports (NX), which is calculated by subtracting imports from exports. For a closed economy with no government, the government spending component would not be present, and with no trade, the net exports would also be non-existent, leaving only consumption and investment to spur aggregate demand.
Shifts in the aggregate demand curve can indicate fluctuations in these components. A shift to the right indicates an increase in total spending at every price level, suggesting increased consumption, investment, or both, while a shift to the left indicates a decrease. Factors such as changes in consumer behavior, firm investment strategies, and, in an open economy with a government, changes in tax or spending policy could shift the aggregate demand curve.