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What is the identity for aggregate demand?
A
AD = C + I + G + (X - M)
B
AD = C + I + G + (M - X)
C
Exports are foreign buyers' spending on domestic output.
D
Investment is firms' spending on capital goods such as machinery and buildings.
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4.3.2 components of AD and their meanings: AD = C + I + G + (X – M) Flashcards
24 flashcards on CIE Intl A Level Economics 4.3.2 components of AD and their meanings: AD = C + I + G + (X – M): the key terms and definitions you need to recall.