List the components of arrregate demand (AD). – InterviewSolution

InterviewSolution

1.	List the components of arrregate demand (AD).
Answer» components of aggregate deamand in a four sector economy are : (i) private ( house hold) consumpton demand (C ) ,(ii) private investment demand (i) ,(iii) Government demand for Goods and servicess (G) and (iv) Net export ( Export - import ) Demand (X-M) AD is the sum of above mentioned four types of demand symbolically :ADC+I+G+(X.M).

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