Aggregate Demand

Question 1

Aggregate Demand definition?

Answer 1

Total quantity of goods/services in demand in an economy(at a given price/time period)

                                                                             Or  Measure of Total expenditure on countries economy(at a given price/time)

Question 2

Aggregate demand calculation?

Answer 2

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

Question 3

Components of Aggregate demand

Answer 3

C=consumption X=Exports. G=government spending

I= investments. M= Imports

Question 4

6 Factors affecting consumption?

Answer 4

1)Dispodable income

2)wealth

3)Intrest rate

4)Age

5)Inflation

6)consumer confidence

Question 5

Factors affecting investment

Answer 5

Firms invest when they. Expect returns on there Goods

1)Disposbale income

2)intrest rates

3)Technology advances

Question 6

Factos affecting government spending

Answer 6

1) level of economic activity

2) desire to citizens

Question 7

Factors affecting net export

Answer 7

1)Disposable income abroad

2)Exchange rates