Aggregate Demand Flashcards
1
Q
what does C stand for in AD equation
A
household spending on GaS
1
Q
what is the formula for aggregate demand
A
AD = C + I + G (X-m)
2
Q
what does I stand for in the AD equation
A
investment in capital - ie producers spending money on capital
3
Q
what does the G stand for in the AD equation
A
government spending on public goods (service and infrastructure)
4
Q
what is X in AD equation
A
exports income
5
Q
what is m in the AD equation
A
spending on importd
