Aggregate Demand

From Reuters Financial Glossary

Total demand for goods and services in an economy. It comprises: 1) consumption by households 2) investment spending by companies and households 3) local and central government spending on goods and services and 4) demand for exports from overseas consumers and companies. Everything that is consumed in an economy by households or governments, exported, or used as an investment good to produce other products.

See also: Aggregate Supply

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