p Introduction In macroeconomics, aggregate demand (ad) can be defined as the sum of consumption (C), gross investment(D, government expenditure (G) and net export (E-M). c Ad=C++G+E-M2 This is indeed the GDP minus inventory change (n)Introduction • In macroeconomics, aggregate demand (AD) can be defined as the sum of consumption (C), gross investment (I), government expenditure (G) and net export (E-M). AD = C+I+G+E-M This is indeed the GDP minus inventory change (V)