aggregate demand Flashcards
1
Q
AD
A
total of all demands or expenditures in the economy at any given price
2
Q
what is it measured in?
A
GDP
3
Q
what is the equation?
A
AD = C + I + G + (X - M)
4
Q
what does the AD curve show?
A
the relationship between price level and equilibrium national income
5
Q
4 components of expenditure
A
- consumption
- investment
- government spending
- exports and imports
