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

2023 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Evaluate whether a tax on petrol in the UK would reduce the demand for cars.


The price of coffee beans rose from $1.15 to $1.40 between June and August 2017. A possible cause of this rise is: a) Improved weather conditions in coffee-growing countries; b) An increase in national minimum wage in coffee growing countries.


Explain opportunity cost


Explain why monopolies may be an undesirable form of market structure


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