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Aggregate demand is the total quantity of goods and services that will be purchased at a given price level. It has four main components: 1) Consumption, which depends on disposable income, wealth, and prices. 2) Investment, which depends on output, the cost of capital, and expectations about the future. Monetary policy influences investment. 3) Government purchases of goods and services, which are directly determined by government spending decisions. 4) Net exports, which are exports minus imports and dep
- Author
- stanisanu
- Language
- EN