Definition Aggregate Demand. Description.
Aggregate Demand is the total of all planned expenditure in
an economy at each level of prices during a specific time period.
It is the total of all desired expenditure at any time by
all groups in the economy. The main spending groups are consumers (Consumption),
companies (Investments), government (Government Expenditure). Exports must
be added; imports must be subtracted.
In a formula: Aggregate Demand
is = Consumption + Investments + Government Expenditure + (Exports - Imports)
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Compare also:
Aggregate Supply |
Disaggregation |
Vendor Managed Inventory
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