For an economy, aggregate demand equals:
A) consumption plus investment plus government spending plus exports.
B) consumption plus investment plus government spending plus (exports minus imports).
C) consumption plus investment plus (taxes minus transfers) plus (exports minus imports).
D) consumption plus investment plus government spending plus (imports minus exports).

Question

Quizplus · Accepted Answer

Aggregate demand is the total amount of goods and services demanded in an economy. It is calculated as the sum of consumption, investment, government spending, and net exports (exports minus imports). Therefore, option B is the correct choice as it includes all the necessary components of aggregate demand.

For an Economy, Aggregate Demand Equals