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Aggregate Demand

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Aggregate Demand
The total demand of goods and services in an economy at a given overall price and time. Aggregate demand is tracked on an aggregate demand curve, which plots demand against price. When prices are rising, this indicates that the aggregate supply in the economy is inadequate to meet the aggregate demand; this leads businesses to expand their operations and produce more goods and services.


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Restoring America's savings-investment balance implies a reduction in global aggregate demand of around $800 billion.
Controversially, aggregate demand is assumed to be the single most important driver of long-term economic growth.
A recent article in this journal by Professors Saltz, Cantrell, and Horton questioned the validity and existence of the aggregate demand curve in macroeconomics.
 
 
 
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