Answer:
Given :
A nation produces 500 units of output,
Sells 400 of these to domestic consumers,
Price = $2 per unit
Exports the remaining 100 units
Imports = 50 units
Price of Imports = $3 per unit.
We can compute the aggregate demand using the following formula:
Aggregate Demand = (price of commodity × Quantity sold) + (price overseas × exports)
= ($2×400) + ($2.50×100)
= 1050
∴ Aggregate demand for the output of this country is 1050