Which of the following is a component of aggregate demand?

A) Transfer payments from government
B) Taxation by government
C) Purchases by government
D) Borrowing by government
E) Saving by consumers

Aggregate Demand

The combined requests for goods and services across an economy, factoring in the prevailing price level for a set period.

Government Purchases

Expenditures made by the government for goods and services that directly satisfy public needs or are used to produce other goods and services.