Aggregate demand and its components
Aggregate demand and its components
Aggregate demand (AD) is the total planned spending on domestic goods and services at each average price level over a given period. It measures planned spending by households, firms, the government and overseas buyers, rather than spending that has already been realised.
Step-by-step lessons covering Edexcel A A Level Economics 2.2.1 The characteristics of AD for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.