+3 votes
in Class 12 by kratos

What do you understand by Aggregate Demand ?

1 Answer

+4 votes
by kratos
 
Best answer

Aggregate Demand is the Total Demand of all Final Goods and Services by all the Consumers of the Economy at given Price Level.

Aggregate Demand (A.D.) = C + I + G + N.E.

Here C = Private Consumption

I = Private Investment

G = Government Expenditure

N.E. = Net Exports

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