Last year, Country A's aggregate demand was $9.8
 billion. This year, Country A's citizens increased their consumption of American goods by $0.7
 billion, while their consumption of other goods, as well as other AD components, remained unchanged.

Calculate this year's aggregate demand in Country A. Enter your answer in billions of dollars in the box and round to one decimal place if necessary.

To calculate this year's aggregate demand in Country A, we can follow these steps:

1. Start with last year's aggregate demand: \$9.8 billion.
2. This year, citizens increased their consumption of American goods by \$0.7 billion.
3. The rest of the components of aggregate demand remained unchanged.

Thus, we can calculate this year's aggregate demand by adding the increase in consumption of American goods to last year's aggregate demand:

\[
\text{This year's AD} = 9.8 + 0.7 = 10.5 \text{ billion dollars}
\]

So, this year's aggregate demand in Country A is **\$10.5 billion**.

Would you like further details or explanations on this calculation?

Here are five related questions to deepen your understanding:
1. What are the main components of aggregate demand?
2. How does an increase in consumption impact a country's aggregate demand?
3. What factors could lead to changes in aggregate demand besides consumption?
4. How might government policies affect a country's aggregate demand?
5. Can an increase in imports have an opposite effect on aggregate demand?

**Tip**: Aggregate demand consists of consumption, investment, government spending, and net exports (exports minus imports).

Last year, Country A's aggregate demand was $9.8 billion. This year, Country A's citizens increased their consumption of American goods by $0.7 billion, while their consumption of other goods, as well as other AD components, remained unchanged. Calculate this year's aggregate demand in Country A. Enter your answer in billions of dollars in the box and round to one decimal place if necessary.

Discover how to calculate this year's aggregate demand in Country A, starting from last year's $9.8 billion, with an increased consumption of $0.7 billion in American goods. This solution involves basic economic concepts and simple addition, suitable for high school students in Grades 10-12.

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