Aggregate Demand and It's Components | Class 12 Macroeconomics| Ecoholics

What is Aggregate Demand?
Aggregate demand refers to the total demand for finished goods and services in an economy. Finished products are goods and services that have been fully manufactured - not including intermediate goods that are used as inputs in the production process.
Aggregate Demand = G + C - I + (X-M)
Aggregate Demand - Components
An economy’s aggregate demand is the sum of all individual demand curves from different sectors of the economy. It is typically the sum of four components
1) Government Spending (G)
2) Consumption Spending (C)
3. Investment Spending (I)
4) Net Exports (X-M)
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