Alex-Torres
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Mav455
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The formula for Aggregate Demand is: Consumption + Investment + Govt Spending (Exports - Imports),so these all make up Aggregate Demand. Consumption has the highest figure, thus it accounts for 2/3 of Aggregate Demand
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Alex-Torres
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(Original post by Mav455)
The formula for Aggregate Demand is: Consumption + Investment + Govt Spending (Exports - Imports),so these all make up Aggregate Demand. Consumption has the highest figure, thus it accounts for 2/3 of Aggregate Demand
Thanks, I forgot to subtract imports
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