Aggregate Demand = C + I + G + (X – M) Aggregate Demand = $5 trillion + $10 trillion + $4 trillion + (- $1 trillion) Aggregate Demand = $18 trillion. Therefore, the country's aggregate demand for the year 2018 stood at $18 trillion. Popular Course in this category. All in One Financial Analyst Bundle - 250+ Courses, 40+ Projects 250+ Online ...
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AD = C+I+G+ (X-M) C = Consumer expenditure on goods and services. I = Gross capital investment – i.e. investment spending on capital goods e.g. factories and machines. G = Government spending e.g. spending on NHS, education. Note transfer payments in the form of pensions and unemployment benefits are not included because they are not related ...
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Aggregate demand is the demand for all goods and services in an economy. The law of demand says people will buy more when prices fall. The demand curve measures the quantity demanded at each price. The five components of aggregate demand are consumer spending, business spending, government spending, and exports minus imports.