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What aggregate demand means

What aggregate demand means

Schematic of aggregate demand showing AD = C + I + G + (X - M) with boxes for consumption, investment, government spending, and net exports, and a note that imports are subtracted because spending goes abroad

Aggregate demand is the total planned spending on domestically produced goods and services at a given price level over a period of time. It represents economy-wide demand, linking to real GDP rather than demand for one single product.

The components of aggregate demand (AD) Lesson

  1. A Level
  2. /Economics
  3. /The components of aggregate demand (AD)