AD+AS 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.
2
Q
What is aggregate demand?
A
The total expenditure on the goods and services produced in an economy in a period of time.
3
Q
What is the formula for aggregate demand?
A
AD = C + I + G + (X - M)
