CAIE A-Level Economics 4.3.2 AD components

CAIE A-Level Economics 4.3.2 AD components
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise applying C, I, G and net exports to explain changes in aggregate demand, growth and inflation outcomes.

How this is tested

  • use AD = C + I + G + (X - M) to classify expenditure and closed-economy demand
  • explain how changes in exports, imports or current accounts affect AD and inflation
  • calculate or describe component contributions to real output growth from data

Question 30

[Maximum number: 1]

What are the components of aggregate demand?

A

consumption + investment + government spending + (exports - imports)

B

consumption + investment + taxation - (exports - imports)

C

consumption + saving + taxation - (exports - imports)

D

consumption + saving + taxation + (exports - imports)