{"id":1323,"date":"2021-04-28T00:15:19","date_gmt":"2021-04-28T00:15:19","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/what-is\/aggregate-demand\/"},"modified":"2021-04-28T00:15:19","modified_gmt":"2021-04-28T00:15:19","slug":"aggregate-demand","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/what-is\/aggregate-demand\/","title":{"rendered":"Aggregate demand"},"content":{"rendered":"
\n

What is aggregate demand?<\/h2>\n

Aggregate demand consists of quantity of goods and services that consumers in a country require, for a certain price level and over a period of time<\/strong>.<\/p>\n

This demand comes from the State, companies and families (economic agents) of a region. In addition, it is closely related to the GDP (gross domestic product) of the country, since they usually measure the same.<\/p>\n

Because it depends on the goods and services that the beneficiaries usually want to buy, the aggregate demand can be accounted for specifically: is composed of the<\/strong> consumption (C), investment (I), public spending (G) and exports (X)<\/b> net of a country.<\/p>\n

\"Aggregate<\/p>\n

Aggregate demand graph.<\/p>\n<\/div>\n

Aggregate demand formula<\/h2>\n

To calculate aggregate demand, the following formula is usually used:<\/p>\n

\"Aggregate<\/p>\n

Aggregate demand formula.<\/p>\n<\/div>\n

The components that make up aggregate demand<\/strong> are as follows:<\/p>\n

    \n
  • C<\/strong>: consumption by families, even those made abroad.<\/li>\n
  • I<\/strong>: all investments made by companies in a country.<\/li>\n
  • G<\/strong>: public spending, that is, the amount of money a country spends.<\/li>\n
  • XM<\/strong>: net exports, i.e. exports (X)<\/strong> minus imports (M)<\/strong> from a country.<\/li>\n<\/ul>\n

    With this formula, we can conclude that aggregate demand is the gross domestic product of a country.<\/p>\n

    Determinants of aggregate demand<\/h2>\n

    The factors that allow the aggregate demand to be carried out are the following:<\/p>\n

      \n
    • The consumer spending<\/strong>, which depends on the economic situation of the families, their income and interests.<\/li>\n
    • The public spending of a country.<\/li>\n
    • The investment by SMEs and private companies<\/strong>.<\/li>\n
    • The money supply of a country, that is, the amount of money it has available.<\/li>\n
    • The monetary and fiscal policy of a country.<\/li>\n<\/ul>\n<\/div>\n\n\n
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      What is aggregate demand? Aggregate demand consists of quantity of goods and…<\/p>\n","protected":false},"author":1,"featured_media":1324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-is"],"_links":{"self":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/comments?post=1323"}],"version-history":[{"count":0,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1323\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media\/1324"}],"wp:attachment":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media?parent=1323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/categories?post=1323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/tags?post=1323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}