Aggregate Demand
Definition
Aggregate demand refers to the total amount of goods and services demanded in an economy at any given time.
Analogy
Picture aggregate demand as a shopping list. Just like your shopping list represents all the items you want to buy at once, aggregate demand represents all the goods and services that people, businesses, and governments want to purchase within an economy.
Related terms
Consumption: The spending on goods and services by individuals or households.
Investment: Spending on capital goods (e.g., machinery, buildings) by businesses or individuals.
Government Expenditure: Spending on goods and services by the government.
"Aggregate Demand" appears in:
Subjects (1)
Are you a college student?
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.