Aggregate demand is the sum of
A)C + I + G + (X − IM).
B)C + I + X.
C)C + I + X − IM.
D)C + I + G.

Question

Quizplus · Accepted Answer

Aggregate demand is the total amount of goods and services that households, firms, the government, and foreign buyers are willing and able to purchase at different price levels. This includes consumption (C), investment (I), government spending (G), and net exports (X-IM). Therefore, option A is the correct choice as it represents the complete equation for aggregate demand.

Aggregate Demand Is the Sum of