What is aggregate demand? What are its major components?

What will be an ideal response?

Aggregate demand is the total amount that all consumers, business firms, and government agencies spend on final goods and services. The major components are:1. Consumer expenditure is the total value of all consumer goods and services demanded.2. Investment spending is the amount that firms spend on factories, machinery, software, and the like, plus the amount that families spend on new houses.3. Government purchases of goods and services, includes items such as paper, computers, airplanes, ships, and labor bought by all levels of government.4. Net exports is defined as U.S. exports minus U.S. imports.