Question 8
MediumOriginal questionRead the two statements and choose the correct option.
I. Aggregate demand is the spending actually recorded at the end of the year.
II. In a two-sector economy, aggregate demand is C + S.
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
AD is planned (ex ante) spending, not the recorded figure. I is false.
C + S is income; AD is C + I. II is false.
- Concept
- What AD is
- Typical timeTypical
- 70 s
- Your timeYours
- —
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