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

1572 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is meant by comparative advantage?


Can the creation of a labour union actually cause a loss of employment?


Describe and explain the factors that determine supply and demand, and use diagrams to support your answer.


What is the difference between a merit good and a public good?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences