Aggregate demand and related concepts | Macroeconomics | Class 12 | chapter 7 | Part 1

Aggregate demand and related concepts | Macroeconomics | Class 12 | chapter 7 | Part 1
Topics covered :
Aggregate demand
consumption
investment
components of AD
Aggregate supply

#macroeconomics #rajatarora #economics

[DigambarKumarSaw]

1) AD = aggregate expenditure
2) AD is a flow concept.
3) AD = C + 1 + G + (X-M)
C= consumption expenditure
Directly influenced by DISPOSAL INCOME.
l= investment expenditure
By firms on capital goods.
G= government expenditure
Net exports = ( X-M)
4) AD as 2 sector: C + 1
5) consumption can never be 0. Hence AD also not 0.
6) at 0 level of income consumption is called AUTONOMOUS consumption. ( C bar)
7) sources of e bar =
a) previous savings
b) borrowings
c) sale of assets
8) income x axis.
9) AD curve parallel to C curve.
10) AS = National income
11) income is either SAVED or consumed
As = c + S = y
12) c bar = - s
13) as curve = 45
Because as curve and national income COINCIDE.



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[dawrasunil]

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[rinkuduwarah]

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[MdNasirHussain-jojl]

) AD = aggregate expenditure
2) AD is a flow concept.
3) AD = C + 1 + G + (X-M)
C= consumption expenditure

[palakseth]

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[D_isha__]

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