Economic Growth - Components of Aggregate Demand (1 Viewer)

[swagmeister]

Heyo,

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

meaning aggregate demand = consumption + investment + government spending + (exports - imports)

BUT

with government spending, is it total government spending OR is it net government spending (taking into account taxes or something)?

 

[RivalryofTroll]

It's the total government expenditure.

 

[mreditor16]

It's the total government expenditure.

+1

Note, this is only for the purposes of the HSC though.