ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The willingness and ability to purchase a product at a given price.
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The total spending on services in a period of time at a given price level.
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The total spending on goods and services in a period of time at a given price level.
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The total demand for a product in an industry.
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Detailed explanation-1: -Aggregate demand is a measurement of the total amount of demand for all finished goods and services produced in an economy. Aggregate demand is commonly expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time.
Detailed explanation-2: -Aggregate demand is the amount of total spending on domestic goods and services in an economy. The downward-sloping aggregate demand curve shows the relationship between the price level for outputs and the quantity of total spending in the economy.
Detailed explanation-3: -Aggregate demand is the sum of four components: consumption, investment, government spending, and net exports.
Detailed explanation-4: -The five components of aggregate demand are consumer spending, business spending, government spending, and exports minus imports. The aggregate demand formula is AD = C + I + G + (X-M).
Detailed explanation-5: -The aggregate price level is a measure of the overall level of prices in the economy. To measure the aggregate price level, economists calculate the cost of purchasing a market basket. A price index is the ratio of the current cost of that market basket to the cost in a base year, multiplied by 100.