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.






2 comments ↓
it give me some knowledge ABOUT ECONOMICS AND RELATED TO this MATTER! thank you.God Bless and more success!
what will happen when the government spending increasing to the aggregate demand?????
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