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Meaning of aggregate demand

 

 

 

Aggregate demand

 

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Business glossary

 

Meaning of term aggregate demand :

 

Aggregate demand is the total of all planned expenditure in an economy at each level of prices. It is calculated by adding together all the spending plans of all the major spending groups in the economy. These are consumers (consumption expenditure), firms (investment), government (government expenditure) and net exports (exports - imports). Aggregate demand is the total of all this spending.

 

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Meaning of term aggregate demand

 

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