4.2.2.3 & 4.2.2.4 - AD

Question 1

Formula for aggregate demand

Answer 1

AD = C + I + G + (X-M)

Question 2

Define aggregate demand

Answer 2

The total spending on goods and services in an economy over a period of time (GDP)

Question 3

Define consumption

Answer 3

Spending on goods and services

Question 4

Define investment

Answer 4

Spending on assets over a number of years to produce goods and services.
- net investment includes depreciation

Question 5

Define gov spending

Answer 5

Spending on publicly provided goods and services