Question

The formula for calculating aggregate demand is y= c+l+G+Nx what does this make aggregate demand equal to A) gross income B) net income C) inflation rate

Answer 1

Option A. Aggregate demand is equal to the gross income that is related to the circular flow with the income and expenditure within a certain economy that has an origin and a destination. These are the aims and objectives so that the demand for production is created and the gross domestic product is generated, which is the total demand for domestic production, which is composed of all the given variables.