Friday, 6 March 2015

What is aggregate demand?

Total level of demand for desired goods and services (at any time by all groups within a national ...

 
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Friday, March 6, 2015
 
Term of the Day

aggregate demand

Total level of demand for desired goods and services (at any time by all groups within a national economy) that makes up the gross domestic product (GDP). Aggregate demand is the sum of consumption expenditure, investment expenditure, government expenditure, and net exports.
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Usage Example
The decline in credit availability reduces aggregate demand, which tends to increase unemployment, a classic unintended consequence of the policy.
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