5 Questions
What are the components of Aggregate Demand?
The components of Aggregate Demand are Private Consumption Expenditure (C), Investment Expenditure (I), Government Expenditure (G), and Net Exports (Exports - Imports) (X – M)
What is aggregate demand?
Aggregate demand refers to the total value of final goods and services which all the sectors of an economy are planning to buy at a given level of income during a period of one accounting year.
What does AD stand for in the context of macroeconomics?
AD stands for Aggregate Demand, which is the aggregate expenditure that different sectors of the economy are willing to incur during a given period of time.
Is AD considered a flow concept or a stock concept?
AD is considered a flow concept as it is generally measured for the period of an accounting year.
What does the formula AD = C + I + G + (X-M) represent?
The formula AD = C + I + G + (X-M) represents the calculation of Aggregate Demand, where C is Private Consumption Expenditure, I is Investment Expenditure, G is Government Expenditure, and (X-M) represents Net Exports (Exports - Imports)
Test your knowledge of Aggregate Demand and its significance in Macroeconomics with this Class 12 Macroeconomics quiz. This quiz covers the concept of aggregate expenditure and its relationship to different sectors of the economy, providing a comprehensive understanding of this important economic concept.
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