Asked by IsmailEconomics πŸ“ˆ

What factors affect the Aggregate Demand curve?

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Zahra Abu

Qur'an & Maths Tutor with 4 years experience

Government spending Consumer spending Exports Imports Investment

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Rahma Jeilani

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The answer to your question is C+I+G+(X-M)

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Mahad Isa

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This can also be summarised more simply in an aggregate demand equation. The equation states that aggregate demand is made up of 5 main components which is basically the factors given in the previous answer. So AD=C+G+I+(X-M),the letter C standing for consumption,G standing for government spending,I standing for investment and X-M standing for exports minus imports which makes up part of the balance of payments of a country. Hoped this helped.

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