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In a simple closed economy without trade or government, aggregate demand is______.

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Question

In a simple closed economy without trade or government, aggregate demand is______.

Options

  • C + I + G + (X - M)

  • C + I

  • G + X

  • I + M

MCQ
Fill in the Blanks
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Solution

In a simple closed economy without trade or government, aggregate demand is C + I.

Explanation: 

It includes only household consumption and firm investment, excluding external trade and public spending.

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