_____demand describes the overall, or total demand for all final goods and services produced in an economy

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14-11-2022
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_____demand describes the overall, or total demand for all final goods and services produced in an economy

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shomerajeshwari90 shomerajeshwari90 · Answer 1 · 2022-11-19T07:10:31+01:00

Aggregate demand describes the overall, or total demand for all final goods and services produced in an economy.

The total quantity of demand including all completed goods and services generated inside an economy is defined as aggregate demand. The entire amount of money spent on those services and products at a given price level and time is characterized as aggregate demand.

Technically, aggregate demand only resembles GDP over the long run if the price level has already been taken into account. This is because of the fact that short-run aggregate demand assesses all production at a fixed nominal price level, wherein nominal is not inflation-adjusted. Based on the method employed as well as the different components, more variations in the calculations may take place.

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