Under Keynesian analysis,aggregate demand can be written as
A)Yad = C + I + G + NX.
B)Yad = C + I + G - NX.
C)Yad = C - I - G - NX.
D)Yad = C + I - G - NX.

Question

Quizplus · Accepted Answer

According to Keynesian analysis, aggregate demand can be written as Yad = C + I + G + NX, where C is consumption spending, I is investment spending, G is government spending, and NX is net exports. This equation shows the total spending in an economy and determines the level of output and employment. Therefore, option A is the correct choice.

Under Keynesian Analysis,aggregate Demand Can Be Written as