Which of the following is not a component of aggregate demand in a two-sector economy?
a)Net Exports
b)Government Expenditure
c)Consumption
d)Both (a) and (b)
a)Net Exports
b)Government Expenditure
c)Consumption
d)Both (a) and (b)
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Answer:
the answer is option D
Explanation:
The aggregate demand in two sector economy only includes the expenditure made by the consumer sector and the producer sector. The expenditure by the government sector and net exports are not included in the two sector economy.
Answer:
the correct answer is option D .so both net exports and government expenditure.