2.2.1 Aggregate demand

Question 1

Aggregate demand

Answer 1

AD = C + I + G + (X - M)
Aggregate demand = Consumption + Investment + Government spending + (Exports - Imports)

The total amount of goods and services demanded in the economy at a given time and price level

Question 2

Animal spirits

Answer 2

The state of confidence or pessimism held by consumers and businesses