Answer: An increase in aggregate demand can result in a monetary gain for households and factors of production through higher wages, returns on capital, and appreciation of assets during inflationary periods.
Explanation: Aggregate demand is a measure of the total demand for goods and services in an economy. It includes the demand from consumers, businesses, and the government, as well as the demand for exports from other countries. When aggregate demand increases, it typically leads to an increase in the prices of goods and services, which can result in a monetary gain for factors of production and households.
The increase in aggregate demand can cause businesses to increase their production to meet the higher demand, which in turn leads to an increased demand for factors of production, such as labor and capital. As the demand for factors of production increases, their prices may also increase, resulting in monetary gain for households that own these factors, such as workers who receive higher wages or investors who earn higher returns on their capital.
Furthermore, an increase in aggregate demand can lead to inflation, which can also benefit households that own assets that appreciate in value during inflationary periods, such as real estate or stocks.
In summary, an increase in aggregate demand can result in a monetary gain for households and factors of production through higher wages, returns on capital, and appreciation of assets during inflationary periods.