If C represents aggregate consumption, Id represents domestic investments, G represents government expenditures, E represents national expenditures on goods and services, X represents foreign demands for exports, and M represents domestic demand for imports, then aggregate demand for this country equals
A. C + Id + G + (X - M).
B. E + C + Id + (X - M).
C. E + (M - X).
D. C + Id + G.
Answer: A
Economics
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Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
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Economics
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Economics