ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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aggregate demand
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aggregate supply
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Either A or B
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None of the above
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Detailed explanation-1: -Aggregate demand means the total demand for final goods and services in an economy. It is the total (final) expenditure of all the units of an economy, i.e., households, firms, government, and the rest of the world.
Detailed explanation-2: -GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year).
Detailed explanation-3: -Aggregate supply, also known as total output, is the total supply of goods and services produced within an economy at a given overall price in a given period.
Detailed explanation-4: -The full form of GDP is Gross Domestic Product. GDP is the overall monetary or consumer value of all finished goods and services produced within the boundaries of a nation over a given time. It serves as a specific measure of overall domestic output, as a detailed scorecard of the economic health of a given country.
Detailed explanation-5: -Aggregate Demand (ad) It refers to the total value of all final goods and services that are planned to be purchased by all sectors of the economy at a given level of income over a given time. AD denotes the total expenditure on goods and services in an economy over a given time.