Aggregate Demand?

[Hafiz]

AD= C + I + G + (X - M)

what do these letters represent.

The chapter is under Macroeconomic factors.

- Reducing government expenditure will decrease AD.
- Reducing imports, savings and tax will act to increase AD.

[Cubicile_blues]

AD = Aggregate Demand

Aggregate Demand is composed of the following factors

C = consumption

I = Investment

G = Government spending

X = Exports

M = Imports

I hope this sovles your query. Please free feel to ask any other queries.