The total demand for goods and services within a particular market.
it is generally assumed that increases in credit stimulate aggregate demand
Example sentencesExamples
- In France output will decline as a result of the shift in aggregate demand.
- When inflation increases, the central bank can always cool it off by tighter monetary policies, which weaken aggregate demand.
- Since the Great Depression of the 1930s and until the early 1970s most economists viewed economic fluctuations as the outcome of shocks to aggregate demand.
- Suppose that on account of weak aggregate demand inflation has fallen from 2% to 1%.
- The belief that our present economic downturn is nothing more than a lack of "aggregate demand" is simply wrongheaded on all counts.