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

Question

Quizplus · Accepted Answer

Under Keynesian analysis, aggregate demand (Y^ad) is the total demand for goods and services in an economy and is expressed as the sum of consumption (C), investment (I), government spending (G), and net exports (NX), which is exports minus imports. Hence, the correct formula is Y^ad = C + I + G + NX.

Under Keynesian Analysis,aggregate Demand Can Be Written as