<p>The existence of aggregate demand does not mean that aggregate demand is fulfilled. For instance if the aggregate planned demand is 100 billion dollars and due to crisis or war output is very low at just 10 billion dollars. Does the national income equal 100 billion dollars?</p>

CC BY-SA 4.0
2018-11-16T15:38:32.260Z
So the difference is AD is planned while NY is actual ?
JIM
CC BY-SA 4.0
2018-11-16T15:22:15.503Z
2018-11-16T15:22:15.503Z
DrStrangeLove
<p>Aggregate Demand is Basically </p>

<p><span class="math-container">$$
AD = C + I + G + X - M 
$$</span></p>

<p>Is not this national income Through <em>Expenditure Method</em> ?</p>

<p>Then why don't we treat AD equal to National Income ?</p>

<macroeconomics><aggregate-production>
Why doesn't Aggregate Demand mean National Income whereas Aggregate supply is equal to national income?
JIM
# Why doesn't Aggregate Demand mean National Income whereas Aggregate supply is equal to national income?

(Asked by: username_0 on 2018-11-16)

Aggregate Demand is Basically

$$
AD = C + I + G + X - M
$$

Is not this national income Through *Expenditure Method* ?

Then why don't we treat AD equal to National Income ?

**Tags:** macroeconomics, aggregate-production


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## 1 answers

### Answer by username_1 on 2018-11-16. Score: 1

The existence of aggregate demand does not mean that aggregate demand is fulfilled. For instance if the aggregate planned demand is 100 billion dollars and due to crisis or war output is very low at just 10 billion dollars. Does the national income equal 100 billion dollars?

> **Comments:**
> **username_0**: So the difference is AD is planned while NY is actual ?  

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