Notes>Macroeconomics>2.2 Aggregate demand and aggregate supply

Definitions   Aggregate demand is the total spending on goods and services in an economy, consisting of consumption, investment, government expenditure and net exports. Consumption is spending by individuals and households on domestic goods and services in a period of...

Aggregate demand In microeconomics demand only represents the demand for one product or service in a particular market, whereas aggregate demand in macroeconomics is the total demand for goods and services in a period of time at a given price level. Components of AD:...