AD = C + I + G + X – M

Readers Question: what does AD stand for in economic terms??

AD = Aggregate Demand.

Aggregate Demand is composed of various factors C, I, G, X – M

C= Consumer spending

I = Investment (Gross fixed Capital Formation)

G= Government Spending

X= Exports

M= Imports

AD places a crucial role in determining the level of national output in an economy. Although Monetarists will argue it is AS which will determine the long run trend rate of growth.

33 Responses to AD = C + I + G + X – M

  1. Chance Korse November 9, 2012 at 6:40 pm #

    Here is a topic that is related: Banks not lending? Yahoo, Google, and Wall Street Journal are all helpful in presenting relevant subject matters at the door step of my research. Lending mortgage money is very low on the banks’ list of priorities. The mortgage lending profit margin is very unattractive. They love 18% on loans. Research regarding the banks financial position clearly shows poor basic banking fundamentals are still a huge problem. Their balance sheets are peppered with complex foot-notes making it difficult to ascertain what is really going on. Fortunately, most top banking officials responsible for the banking mess are leaving through attrition or forced out. Over time, the banks will eventually be able to show a straightforward balance sheet and able to provide mortgage money money again. Not soon enough though.

    CHANCE KORSE,
    TEMECULA, CA

  2. Chance Korse November 9, 2012 at 6:38 pm #

    . her is a topic that’s related: Banks not lending? Yahoo, Google, and Wall Street Journal are all helpful in presenting relevant subject matters at the door step of my research. Lending mortgage money is very low on the banks’ list of priorities. The mortgage lending profit margin is very unattractive. They love 18% on loans. Research regarding the banks financial position clearly shows poor basic banking fundamentals are still a huge problem. Their balance sheets are peppered with complex foot-notes making it difficult to ascertain what is really going on. Fortunately, most top banking officials responsible for the banking mess are leaving through attrition or forced out. Over time, the banks will eventually be able to show a straightforward balance sheet and able to provide mortgage money money again. Not soon enough though.

    CHANCE KORSE,
    TEMECULA, CA

  3. Chance Korse October 11, 2012 at 11:13 pm #

    My research about the stock markets is enhanced due to timely and relevant content delivered to my electronic door-step by searching on both Yahoo and Google. The volatility in the news media sector are the direct result of the lightening speed of information. In every given hour one can state that there is a pattern of events but it is too soon to call it a trend. The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial banking environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours.

    Chance Korse, Temecula, CA

  4. Chance Korse August 2, 2012 at 1:59 am #

    My research about the stock markets is enhanced due to timely and relevant content delivered to my electronic door-step by Google.The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial banking environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours.

    Chance Korse, Temecula, CA

  5. Chance Korse August 2, 2012 at 1:58 am #

    My research about the stock markets is enhanced due to timely and relevant content delivered to my electronic door-step by Google.The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial banking environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours.

    Chance Korse, Tmecula, CA

  6. Chance Korse June 27, 2012 at 2:47 am #

    I use Google, and they are correct in stating that when I was in college, the history books stated that there are three large interest groups that run the world we live in: Big Government, Big Business and Big Labor. I also like Google because they use advertising that is is relevant.

    What I have found out now, is that we actually have five large interest groups: adding Big Consumer (class action lawsuits) and Big Media (Internet) completes the equation of the fast moving power brokers that run the world we live in. What do you think?

    CHANCE KORSE,
    TEMECULA, C

  7. Chance Korse May 28, 2012 at 5:03 pm #

    Very interesting to see that labor and business has the same confrontational divide in the political arena in UK as they have in USA.

    When I was in college, the history books stated that there are three large interest groups that run the world we live in: Big Government, Big Business and Big Labor.

    What I have found out now, is that we actually have five large interest groups: adding Big Consumer (class action lawsuits) and Big Media (Internet) completes the equation of the fast moving power brokers that run the world we live in. What do you think?

    CHANCE KORSE,
    TEMECULA, CALIFORNIA, USA

  8. Chance Korse May 28, 2012 at 4:57 pm #

    When I was in college, the history books stated that there are three large interest groups that run the world we live in: Big Government, Big Business and Big Labor.

    What I have found out now, is that we actually have five large interest groups: adding Big Consumer (class action lawsuits) and Big Media (Internet) completes the equation of the fast moving power brokers that run the world we live in. What do you think?

    CHANCE KORSE,
    TEMECULA, CALIFORNIA, USA

  9. Chance Korse April 26, 2012 at 10:51 pm #

    The daily question by Chance Korse is: Is the U.S. economy slowly growing? Is the UK economy growing? I asked this question last year. Today, the US economy is improving nicely while today the UK economy seems to be slipping. The exchange markets are volatile than we have ever known. Every day there is a new reason the markets gain or go south. One day it’s oil, the next day employment, next natural disasters, the next political upheaval. This is why Chance Korse feels there is no sustainable direction one way or the other. Broader trends are harder to detect. Is it the new speed of trading, volume, and globalization of interactive stock exchanges. Follow other financial blogs by Chance Korse. Chance Korse, Temecula, California, USA

    • Gail Clark May 13, 2012 at 3:58 pm #

      I agree. The daily question by Chance Korse is: Is the U.S. economy slowly growing? Chance asked this question last year. Today, the US economy is improving nicely while today the European economy seems is still under water. The exchange markets are volatile than we have ever known. Every day there is a new reason the markets gain or go south. One day it’s oil, the next day employment, next natural disasters, the next political upheaval. But the problem is that despite that those same problems are still there the next day but pushed aside for yet another opinion for the day.This is why I also feel there is no sustainable direction one way or the other. Broader trends are harder to crystal ball. Is it the new speed of trading, volume, and globalization of interactive stock exchanges. I like to follow Chance Korse Temecula blogs. Gail Clark, Fresno, CA

  10. Chance Korse April 11, 2012 at 4:11 am #

    WE all know (maybe) that economics and computer speed is a fairly new tool in assessing market trends. Few economists and speculators are masters of the new tool.

    The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial banking environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours.

    Chance Korse

  11. purna chandra rao j March 3, 2012 at 12:22 pm #

    consumption expenditure+investment

  12. Chance Korse October 5, 2011 at 5:42 pm #

    Economics and computer speed is a fairly new tool in assessing market trends. Few economists and speculators are masters of the new tool.

    The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial banking environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours.

    Chance Korse

  13. Chance Korse October 2, 2011 at 5:16 am #

    The market is too volatile. Why? In May of 2011 I said it and again in October, 2011. The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial banking environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours. Why is the market so volatile? Hyper nervousness? Rudderless in a stormy sea?

    Chance Korse

  14. Chance Korse October 2, 2011 at 5:06 am #

    In May of 2011 I said it and again in October, 2011. The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial banking environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours. Why is the market so volatile? Hyper nervousness? Rudderless in a stormy sea?

    Chance Korse

  15. Chance Korse October 1, 2011 at 11:19 pm #

    Volatile Markets. The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial banking environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours.

    Chance Korse

  16. Chance Korse October 1, 2011 at 11:18 pm #

    The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial banking environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours.

    Chance Korse

  17. Chance Korse June 21, 2011 at 6:00 pm #

    This great! The U.S. Chamber of Commerce is taking a very cooperative step in welcoming our U.S. President Obama to discuss job creation.Just to be clear, I know of no CEO who does not have job-cuts at the very top of the corporate agenda. Employee payroll is an obstacle to profit and must reduced at all times.Innovation, in its business context, means jobless growth and expansion. That’s Business 101. Does anybody understands the conflicting motives behind job creation and business expansion? CHANCE KORSE, TEMECULA, CALIFORNIA (Temecula, CA)
    Chance Korse (Temecula), California

  18. Chance Korse June 15, 2011 at 3:51 am #

    The U.S. Chamber of Commerce is taking a very cooperative step in welcoming our U.S. President Obama to discuss job creation.Just to be clear, I know of no CEO who does not have job-cuts at the very top of the corporate agenda. Employee payroll is an obstacle to profit and must reduced at all times.Innovation, in its business context, means jobless growth and expansion. That’s Business 101. Does anybody understands the conflicting motives behind job creation and business expansion?CHANCE KORSE, TEMECULA, CALIFORNIA (Temecula, CA)
    (Temecula, California

  19. Chance Korse June 9, 2011 at 5:14 pm #

    Apparently I raised the right issues, the global financial markets are indeed producing a continuous stream of fast moving information. The big question: how do you sort it out? Any trend analysis have a life cycle of as low as one hour. The larger economic picture is hard to track but it is probably connected to world population growth.

  20. Chance Korse June 8, 2011 at 5:34 am #

    Thank you for debating the market and globalization issues that I put forward. All inputs are greatly appreciated. Chance Korse,Temecula, California, USA

  21. Chance Korse June 8, 2011 at 5:33 am #

    My question is: Is the U.S. economy slowly growing? What about U.K? The exchange markets go up and down with more volatility than we have ever known. Every 12 hours there is a new reason the markets gain or go south. One day it’s oil, the next day employment, next natural disasters, the next political upheaval. There is no sustainable direction one way or the other. Broader trends are harder to detect. Is it the new speed of trading, software-driven split second trading, volume, and globalization of interactive exchanges.

  22. Chance Korse June 6, 2011 at 2:23 pm #

    Is the U.S. economy slowly growing? What about U.K? The exchange markets go up and down with more volatility than we have ever known. Every 12 hours there is a new reason the markets gain or go south. One day it’s oil, the next day employment, next natural disasters, the next political upheaval. There is no sustainable direction one way or the other. Broader trends are harder to detect. Is it the new speed of trading, volume, and globalization of interactive exchanges.

  23. Chance Korse May 26, 2011 at 5:42 pm #

    Past uncertain economic times of fifty years ago had no integration of financial global markets. Traditional economic assumptions worked well. Today we have a 24/7 financial investment environment. With computer driven stock exchange stock trading software the investment speculation takes on a new level. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next minutes of trading

  24. Chance G Korse May 23, 2011 at 7:29 pm #

    The uncertain economic times and the integration of financial global markets have created a 24/7 financial investment environment. With computer driven stock exchange stock trading software the investment speculation takes on a new level. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next minutes of trading

    Chance Korse

  25. Chance G Korse May 23, 2011 at 7:24 pm #

    Job creation in the in the U.S. The U.S. Chamber of Commerce is taking a very cooperative step in welcoming our U.S. President Obama to discuss job creation.Just to be clear, I know of no CEO who does not have job-cuts at the very top of the corporate agenda. Employee payroll is an obstacle to profit and must reduced at all times. Innovation, in its business context, means jobless growth and expansion. That’s Business 101. Does anybody understands the conflicting motives behind job creation and business job creation? CHANCE KORSE, TEMECULA, CALIFORNIA

  26. Chance G Korse May 22, 2011 at 11:19 am #

    The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial investment environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours.

    Chance Korse

  27. Chance G Korse May 22, 2011 at 11:18 am #

    The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours.

    Chance Korse

  28. Chance G Korse May 14, 2011 at 1:00 am #

    The uncertainties in our economic times and the global integration of financial markets have created a 24/7 financial banking environment. If one includes computer driven financial software in the commodities and other markets. It almost becomes impossible to sort things out and reach any conclusions that will stand up in the next twelve hours.

    Chance Korse

  29. simi November 23, 2010 at 9:42 pm #

    If G rises then the unemployment goes down on the philips curve

  30. j April 28, 2010 at 2:37 pm #

    kareem, look up keynesian economics and that’ll show you how government spending will increase aggregate demand.

  31. kareem February 11, 2010 at 2:31 pm #

    what will happen when the government spending increasing to the aggregate demand?????

  32. rose November 19, 2009 at 6:46 am #

    it give me some knowledge ABOUT ECONOMICS AND RELATED TO this MATTER! thank you.God Bless and more success!

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