Question

Define aggregate demand. (1 point)

• Aggregate demand is the total demand in the system.
• Aggregate demand is the amount of quantity demanded for a product that exceeds the current quantity supplied of that product.
• Aggregate demand occurs when a previously high-demand item has already been purchased by most consumers, and quantity demanded drops to zero or near-zero.
• Aggregate demand occurs when quantity supplied exceeds quantity demanded and is found by subtraction.

Answer 1

[AI-generated answer — Bot GPT 3.5]

Aggregate demand is the total demand for goods and services in an economy at a given price level and period of time. It represents the sum of individual demands for all goods and services in an economy. This includes consumption, investment, government spending, and net exports. Aggregate demand is influenced by factors such as the level of income and wealth, interest rates, government policies, and consumer and business confidence.