Aggregate Demand Flashcards
1
Q
What is aggregate demand? (AD)
A
The total planned real expenditure on the goods and devices produced within a country.
2
Q
What are the components of AD?
A
Consumption
Investment Spending
Government Spending
Exports of goods and services
3
Q
What is the most significant component of AD?
A
Consumption -
Circa 70% in UK
4
Q
What is the equation of aggregate demand?
(Full Form)
A
Aggregate Demand = Consumption + Investment + Government Spending + ( Exports - Imports)
5
Q
What is the equation of aggregate demand?
(Symbols)
A
AD = C + I + G + (X - M)
6
Q
A
