Chapter 8: Measures of Economic Activity
Chapter 8: Measures of Economic Activity
Chapter 8: Measures of Economic Activity
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Aggregate Demand<br />
• consists <strong>of</strong> consumption (C), investment<br />
spending (I), government spending (G) and<br />
net exports (X – M).<br />
• AD = C + I + G + ( X – M )<br />
• C = Consumption<br />
• I= Investment<br />
• G=Government Spending<br />
• Net Exports = exports (X) minus imports<br />
(M)