Question

Consumption (household sector) spending is the largest component of:_______

a. Aggregate output
b. Aggregate income
c. Aggregate employment
d. Aggregate supply
e. Aggregate demand

Answer 1

a. Aggregate output

Step-by-step explanation:

Aggregate output can also be referred to as GDP. Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the expenditure approach:

GDP = Consumption spending + Investment spending by businesses + Government Spending + Net Export

Consumption spending usually represents 70% of aggregate output.

I hope my answer helps you