4.3.1 Definition of Aggregate Demand
Definition: Aggregate demand (AD) is the total planned spending on a country's goods and services at a given price level in a given time period.
Example: India's AD includes household spending, private investment such as Reliance's new energy projects, government spending in the Union Budget, and net exports of IT services.
🔒 Also in the full notes
- 4.3.2 Components of AD
- 4.3.3 Determinants of AD
- 4.3.4 Shape of the AD curve
- 4.3.5 Causes of a shift in the AD curve
- 4.3.6 Definition of Aggregate Supply
- 4.3.7 Determinants of AS
- 4.3.8 Shape of the AS curve in the short run and long run
- 4.3.9 Causes of a shift in SRAS and LRAS
- 4.3.10 Movement along versus shift of AD and AS
- 4.3.11 Equilibrium in the AD/AS model
- 4.3.12 Effects of shifts in AD and AS on output, price level and employment
- Exam practice: 7 practice questions
- 3 exemplar answers with full model answers and mark breakdowns
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