Which of the following expressions is correct? A)^Yd= C + I + G - NX. B)^Yd = C + I + G + NX. C)^Yd = C + I + (G - T) + NX. D)^Yd = C + I + (G - T) - NX.

Question

Quizplus · Accepted Answer

The correct expression for the aggregate demand in an open economy is $AD = C + I + G + NX$, where $C$ is consumption, $I$ is investment, $G$ is government spending, and $NX$ is net exports (exports minus imports).

Which of the Following Expressions Is Correct