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Question
Aggregate demand is traditionally calculated by summing _____.(1 point)
Responses
consumption, investment, government spending, and net exports
consumption, investment, government spending, and net exports
consumption, investment, government spending, net exports, and inflation
consumption, investment, government spending, net exports, and inflation
consumption, investment, and government spending
consumption, investment, and government spending
consumption, investment, and savings
consumption, investment, and savings
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1 answer
The correct response is:
consumption, investment, government spending, and net exports
This captures the components of aggregate demand, which is typically represented by the formula: \( AD = C + I + G + (X - M) \), where \( C \) is consumption, \( I \) is investment, \( G \) is government spending, and \( (X - M) \) is net exports.
