Aggregate demand

Aggregate demand is the total demand for a country's good and services at a given price level and in a given time period.the component of aggregate demand are consumer expenditure(c), investment(I), government spending (G) and net exports,which is exports(x) minus imports(m), the formula of AD is AD= C+I+G+(X-M)
How this formula reflect some information about AD.
1.If consumption goes up, it will effect the investment, because more consumer expenditure need more supply. It is therefore investment will increase. Which means AD will goes up. But high consumption will bring inflation. So the government need control it, for example budget surplus which means taxation greater than government spending. Because if rise the taxation leading to price of goods goes up. People will not to buy more. Use monetary policy, the government can increase the interest rate, because the saving of people will goes up,and drop the investment as well.opposite if consumption goes down.
2.If government spending increase, the unemployment decrease, so more and more people have job, leading to the productivity goes up, more and more products had produced and they can satisfy more and more demand of consumer. Thus AD will increase.
3.X-M is the balance of payment , when the X greater than M is balance of trade surplus, it is means the demand of products produce by england increase lead to the AD goes up as well.
4.When the X less than M which means balance of trade deficit, it is reflect the demand of consumer on domestic goods decrease and the demand of consumer on other countries increase.so the AD decrease.
Conclusion :
How to increase AD :
1)Decrease interest rate.
2)More government spending.
3)A rise in exports
4)A rise in real GDP
How to decrease AD
1)a rise in imports.
2)Increase unemployment
3)Increase interest rate
4)Less investment
5)Less government spending