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Sun 30 Aug, 2015 04:29 am
What is the difference between Aggregate Expenditure and Aggregate Demand. When it comes in answering questions, which should be used for explanation?
@rachwee,
Aggregate Expenditures = C+ I + G + (X-I). These are the components of spending.
Aggregate Demand is the relationship between the price level and C+I+G +(X-I).