Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 1: Principles of financial trading
Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 2: Principles of Financial Planning and Cash Flow in Financial Trading
Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 3: Understanding financial trading techniques

AGGREGATE SUPPLY AND DEMAND

As defined in the previous section, we can express the overall demand in the economy known as Aggregate Demand by use of the following equation:

AD = C + I + G + (NX), where

AD = Aggregate Demand, C = Consumption, I = Investment, G = Government Spending, and NX = Net Exports.

However, overall demand in the economy can be expressed in one of two ways, each of which depends on whether one examines changes in demand as incomes change or as prices changes. These give rise to the Keynesian Cross and the Marshallian Cross, which are detailed on the next few pages.

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