The aggregate demand curve is best represented by which of the following equations?
A) AD = C + I + G + NX
B) AD = C + I + G - NX
C) AD = C + I + G
D) AD = C + I
E) AD = C + I - G - NX

Question

Quizplus · Accepted Answer

The aggregate demand (AD) curve shows the total amount of goods and services that buyers are willing to purchase at different price levels. It is influenced by consumer spending (C), investment spending (I), government spending (G), and net exports (NX). Therefore, the equation that best represents the AD curve is AD = C + I + G + NX, which includes all of these factors.

The Aggregate Demand Curve Is Best Represented by Which of the Following