In an open Economy with Government, which statement describes aggregate demand (AD or AE)?

(a) AE = C + I + G + NX.
(b) AE=C+I+(G-T)+(X-M).
(c) AE = C + I + G + (X-M) + T.
(d) AE = C + G + X.


Ans: (a) AE = C + I + G + NX.

Economics

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