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

In Keynesian analysis, aggregate demand (Yᵃᵈ) is composed of four components: consumer spending (C), investment spending (I), government spending (G), and net exports (NX), which is the difference between exports and imports. Thus, the correct formula is Yᵃᵈ = C + I + G + NX.

Under Keynesian Analysis,aggregate Demand Can Be Written as