What does the term 'aggregate demand' refer to in macroeconomics?
Total demand for goods and services in an economy
Aggregate demand is the total demand for all final goods and services in an economy at a given price level over a period.
AD = C + I + G + (X – M), that is, consumption plus investment plus government spending plus net exports.
Demand for a single product is a microeconomic idea, not aggregate demand.
Hence, Total demand for goods and services in an economy.
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______ are imposed on items like cigarettes and alcohol.
