Which of the following is NOT a component of aggregate demand?

The correct choice signifies that the stock market is not considered a direct component of aggregate demand. Aggregate demand is represented by the total spending on an economy's goods and services at a given price level and includes four key components: consumption, government spending, investment, and net exports.

Consumption refers to the total spending by households on goods and services. Government spending represents the expenditures undertaken by the government to engage in public projects, infrastructure, and services. Net exports account for the difference between the value of exports and imports, providing insight into the trade balance's impact on demand.

In contrast, while the stock market can indicate investor confidence and reflect economic health, it does not directly contribute to the total spending on goods and services. Changes in stock prices can affect consumption and investment indirectly, but they do not form a part of the aggregate demand itself. Thus, recognizing the components of aggregate demand enables us to understand the factors that directly influence overall economic activity.