Aggregate demand
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Last updated 3:04 PM on 3/21/26
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15 Terms
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Aggregate demand
the total demand for all goods and services within an economy
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Draw an AD curve
Done
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AD formula
C + I = G + (X-M)
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% of Consumption in AD
60%
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% of Investment in AD
14%
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% of Government spending in AD
25%
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% of Net exports in AD
1%
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Net exports formula
Exports - Imports
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Gross investment
value of investment before depreciation
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Net Investment
value of investment after depreciation
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Movement along AD occurs when …
the general price level changes
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Contraction
General price level increases and real GDP value decreases
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Extension
When the general price level decreases and real GDP increases
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Draw a contraction in AD
GPL increases Real GDP decreases
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Draw an extension in AD
done
