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Aggregate demand - Coggle Diagram
Aggregate demand
Factors that influence investment
The rate of economic growth
Business confidence
Animal spirits
Demand for exports
Interest rates
Access to credit
Government regulations
Factors that will influence consumer spending
Disposable income
Rate of savings
Interest rates
Consumer confidence
Wealth
Factors that influence the trade balance
Real income
Exchange rates
State of the world economy
Degree of protectionism
Non-price factors
Formula: AD = C + I + G + ( X-M)
C = consumer spending
I = business investment
G = government spending
X = exports
M = imports
Definition - aggregate demand is the total
level of real expenditure on the goods and
services produced within a country.