Aggregate Demand Formula in an Open Economy with Government
The formula for aggregate demand (AD) in an open economy with a government sector is expressed as the sum of all planned spending components: . Here, C represents consumption, I is investment, G is government spending, X is exports, and M is imports.
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Ch.3 Aggregate demand and the multiplier model - The Economy 2.0 Macroeconomics @ CORE Econ
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Learn After
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