Principles of Macroeconomics / Unit 8 MAC 0703 short lesson, about 20 seconds
Aggregate Demand
Captions available
The idea
Aggregate demand is total planned spending on domestically produced output at each price level: consumption, investment, government purchases, and net exports.
In practice
The same four components as GDP, now read against the price level.
Where people slip
It is planned spending, and it is spending on output produced here, which is why the next two entries matter.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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