What is the Aggregate Demand in an economy?

The aggregate demand (AD) is the total quantity produced in an economy at a given price and is equal to the national income and real GDP.
AD is composed of 4 parts: Consumption (C), Investment (I), Government spending (G), Net exports (X-M)
The formula is AD = C + I + G + (X-M)

HC
Answered by Harshith C. Economics tutor

1897 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Describe and explain the main differences between Perfect Competition and Monopoly market structure.


If we see the MPC decrease interest rates, what effects should we see in the economy


How can the Government increase aggregate demand


Explain the differences between short run and long run growth


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning