Aggregate demand for final goods in economics is the sum of its components, represented by the aggregate demand equation:
\(AD = C + I + G + (X - M)\)
Analysis of options:
Government spending: A direct contributor to aggregate demand through purchases of goods and services.
Imports: Subtracted from exports in the calculation of net exports; do not positively contribute to aggregate demand.
Savings: An allocation of income that does not directly increase aggregate demand; higher savings can reduce consumption.
Taxes: Government revenue; do not directly contribute to aggregate demand but can influence it indirectly by affecting disposable income.
Therefore, Government spending is the correct component of aggregate demand among the provided options.
Match the following:
\[ \begin{array}{ll} \textbf{List-I} & \textbf{List-II} \\[8pt] (A)\ \text{Leftward shift in both demand and supply curves} & (I)\ \text{Equilibrium price remains unchanged} \\[6pt] (B)\ \text{Rightward shift in both demand and supply curves} & (II)\ \text{Equilibrium quantity increases} \\[6pt] (C)\ \text{Equal percentage increase in both demand and supply curves} & (III)\ \text{Equilibrium quantity decreases} \\[6pt] (D)\ \text{Supply curve shifts right and demand curve shifts left} & (IV)\ \text{Equilibrium quantity remains unchanged} \end{array} \]
Match the following:
\[ \begin{array}{ll} \textbf{List-I} & \textbf{List-II} \\[8pt] (A)\ \text{Leftward shift in both demand and supply curves} & (I)\ \text{Equilibrium price remains unchanged} \\[6pt] (B)\ \text{Rightward shift in both demand and supply curves} & (II)\ \text{Equilibrium quantity increases} \\[6pt] (C)\ \text{Equal percentage increase in both demand and supply curves} & (III)\ \text{Equilibrium quantity decreases} \\[6pt] (D)\ \text{Supply curve shifts right and demand curve shifts left} & (IV)\ \text{Equilibrium quantity remains unchanged} \end{array} \]
Match the following:
\[ \begin{array}{ll} \textbf{List-I} & \textbf{List-II} \\[8pt] (A)\ \text{Leftward shift in both demand and supply curves} & (I)\ \text{Equilibrium price remains unchanged} \\[6pt] (B)\ \text{Rightward shift in both demand and supply curves} & (II)\ \text{Equilibrium quantity increases} \\[6pt] (C)\ \text{Equal percentage increase in both demand and supply curves} & (III)\ \text{Equilibrium quantity decreases} \\[6pt] (D)\ \text{Supply curve shifts right and demand curve shifts left} & (IV)\ \text{Equilibrium quantity remains unchanged} \end{array} \]