Aggregate Demand and Macroeconomics Quiz

The components of Aggregate Demand are Private Consumption Expenditure (C), Investment Expenditure (I), Government Expenditure (G), and Net Exports (Exports - Imports) (X – M)

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.

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.

<p>AD is considered a flow concept as it is generally measured for the period of an accounting year.</p> Signup and view all the answers

<p>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)</p> Signup and view all the answers