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

2015 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What will happen to the UK economy if investment increases?


Evaluate the role of buffer stock systems


To what extent can financial regulation correct financial market failure?


Explain two reasons for an outward shift in the supply curve


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:

© 2026 by IXL Learning