Aggregate Demand and Equilibrium
Aggregate Demand and Equilibrium
Aggregate demand is total planned spending on an economy's output at each price level. It is calculated using AD=C+I+G+(X−M)AD = C + I + G + (X - M)AD=C+I+G+(X−M), where CCC is consumption, III is investment, GGG is government spending and X−MX - MX−M is net exports.
Step-by-step lessons on CIE Intl A Level Economics 5.2.7 AD/AS analysis of the impact of expansionary and contractionary fiscal policy. Each one builds up to exam-style questions.