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Aggregate Demand Curve

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Aggregate Demand Curve
A graph representing demand for goods and services in an economy at different prices. If prices are increasing while demand remains constant, this indicates the economy's aggregate supply is inadequate to meet demand. One calculates the aggregate demand curve by combining and properly weighting the demand curves for individual goods and services.


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If different banks have different levels of required reserves, for example, the requirement K in the aggregate demand curve will be equal to the average of the individual banks' requirements.
They also show that the aggregate demand curve for the convenience provided by Treasury debt is downward sloping, and they provide estimates of the elasticity of demand.
This can be illustrated using the concepts of the aggregate demand curve and the aggregate supply curve.
 
 
 
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