Aggregate Demand Flashcards
1
Q
what is aggregate demand
A
the total level of demand or planned real expenditure on UK produced good and services
2
Q
what does expenditure mean
A
spending
3
Q
how do you calculate AD
A
AD = C + I + G + (X-M) C = consumption I = investment G = government X = exports M = imports
4
Q
how do you remember the AD Calculation
A
Could I Go (the) EXtra Mile
5
Q
what does an AD graph look like
A
negative straight slope
6
Q
what are the labels on an AD graph
A
y = price level x = aggregate demand
