Aggregate Demand in Economics

Consumer spending, investment, corporate and government expenditure, and net exports

The total demand for final goods and services in an economy at a given time

With real output on the horizontal axis and the price level on the vertical axis

<p>A higher price level implies lower real wealth and therefore lower consumption spending</p> Signup and view all the answers

<p>$Pigou's$ wealth effect, $Keynes'$ interest rate effect, and the $Mundell–Fleming$ exchange-rate effect</p> Signup and view all the answers