Economics and Statistics

Aggregate demand: Aggregate demand: a function relating price level and the amount of output of a nation demands in a given time period. This function aggregates the demands of all consumers for all the goods and services produced in a nation in a given time period at different price levels. There is an inverse relationship between the quantity of real output demanded and the price level. The lower (higher )the price levels, the greater (lower) the amount of output demanded. Aggregate demand measures the demand for a nation's output of goods and services in a year.  It closely resembles the expenditure approach of calculating the GDP. Aggregate demand for a country depends on four types of spending: Consumption (C): all spending by domestic households on goods and services. Investment (I): all spending by firms on capital goods and by households on real estate. Government spending (G): measures a country's government's expenditures on goods and services. Ne...