Aggregate demand 2.2 Flashcards
1
Q
What is aggregate demand
A
Aggregate demand (AD) is the total level spending in the economy at any given price
2
Q
What are the components of Aggregate demand
A
AD = C + G + I +(X-M)
Consumption - 60%
Government spending - 18-20%
Investment - 15-20%
Net exports - exports minus imports - 5%
3
Q
A
