Final answer:
Investment as a component of aggregate demand specifically refers to business spending on goods and services for productive use.
Step-by-step explanation:
As a component of aggregate demand, investment refers to business spending. Investment expenditure is focused on the spending by businesses on goods and services primarily for productive use, like machinery, equipment, new technology, etc. It's crucial to differentiate it from other components of aggregate demand such as consumer spending, government spending, and net exports.
Business spending is the most variable component of aggregate demand and can be influenced by a variety of factors. For instance, changes in energy prices or government incentives can make investment more or less attractive to businesses. Furthermore, investment is widely seen as a vital aspect of economic growth since it increases productive capacity and can lead to higher levels of output in an economy.