Aggregate Demand and Supply Flashcards

1
Q

What is aggregate supply?

A

Total value of goods and services available for sale in a period of time. An increase in As to match demand will boost circular flow.

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2
Q

What is aggregate demand?

A

The total expenditure on the goods and services produced in an economy in a period of time.

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3
Q

What is the formula for aggregate demand?

A

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

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