Aggregate Demand Flashcards
1
Q
What is aggregate demand?
A
The total demand in an economy.
2
Q
What are the components of AD (4)?
A
Consumption (C)
Investment (I)
Government spending (G)
Net trade (exports-imports) (X-M)
3
Q
What is the formula for AD?
A
AD = C + I + G + (X-M)
4
Q
What is the largest component of AD?
A
Consumption
5
Q
Which way does the AD curve shift if AD rises?
A
Right
