What is AGGREGATE DEMAND?

The total amount spent on final goods and services. In an open economy this is generally considered to be the sum of consumption, investment, government spending, and net exports. See also AGGREGATE SUPPLY.

More On This Topic



Link to This Definition
Did you find this definition of AGGREGATE DEMAND helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary