I dont understand AD= C+I+G+X-M

[hdxx]

I dont understand what each of these are, could someone help?
c= Consumption spending
I= Investment expenditure
G= Government expenditure
X= Exports
M= Imports

I can not think of examples!

[Natasha.97]

I dont understand what each of these are, could someone help?
c= Consumption spending
I= Investment expenditure
G= Government expenditure
X= Exports
M= Imports

I can not think of examples!

Hi!

Aggregate demand (AD): Total level of spending in an economy (the total demand for goods and services within the economy)
- Consumption: The amount of money that households spend in purchasing goods/services, e.g. food, fuel
- Investment: Undertaken by firms, usually to purchase capital equipment e.g. machinery/transport equipment
- Government expenditure: Money spent by the government on infrastructure or social welfare e.g. Gippsland Rail upgrade, North East Link
- Exports: The value of goods that Australia sells to overseas consumers e.g. iron ore, wheat, coal
- Imports: The value of goods that Australian consumers buy from overseas producers e.g. vehicles, telecommunication equipment

Hope this helps

[hdxx]

Thank you so much!!! this has helped heaps