aggregated demand Flashcards
1
Q
what is the AD formula
A
AD = consumption + investment + government spending + (imports - exports)
2
Q
what is AD
A
the total demand for goods/services produced within the economy over a period of time
3
Q
what is the SRAS
A
short run aggregate supply- shows how much output an economy can generate in the short term at each price level
4
Q
what is the LRAS
A
long run aggregate supply- the ability of an economy to meet demand is based on the state of production technology and the available factors of production
