Aggregate Demand and Supply

Factors Affecting Aggregate Demand

What is Aggregate Demand?

Aggregate Demand is the total demand for an economy's goods and services. Aggregate demand consists of the sum of consumption, investment, government expenditure and net exports. 

AD = C + I + G + (X-M)

Notice how the components of aggregate demand are the injections of an economy in a circular flow (minus imports), 

What are the Factors Affecting Aggregate Demand?

The factors affecting aggregate demand are the factors affecting the components of consumption, investment, government expenditure and net exports. 

The factors affecting any component of aggregate demand can be found in the aggregate expenditure section by clicking on the below links:


ABN: 87 574 760 103

  • Facebook - Black Circle
  • YouTube - Black Circle

"ATAR" is a registered trademark of Monash University as a Trustee For The Victorian Tertiary Admission Centre .The School Curriculum and Standards Authority (SCSA) have no involvement in or responsibility for any material appearing on this site. Nor does SCSA endorse or make any warranties regarding the study resources, current and past WACE exams available on this site or sold by Christian Bien. 

Copyright © 2020 Christian Bien at the ATAR Survival Guide