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2. Components of AD

  • Taxations
  • Foreigners
  • Consumer expenditure, Investment, Government spending, Exports and Imports
  • Savings

3. What is Aggregate Demand

  • The total demand for a country's goods and services at a given price level and in a given time period
  • The total value of gooods and services produced in a country at a price level at a given time period

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