Question

Distinguish between desired (ex-ante) demand and effective (ex-post) demand.

Distinguish between ex ante and ex post demand.

Differentiate between ex ante and ex post aggregate demand.

Answer 1

	Desired (ex-ante) demand	Effective (ex-post) demand
1.	Aggregate demand is the total amount of goods and services demanded in the economy. It refers to the desired, intended, or planned (‘ex ante,’ which means ‘beforehand’) demand or spending by the people.	Effective demand is the total amount of goods and services that people actually buy in an economy. It is an ex post concept. ‘Ex post’ means afterwards.
2.	It is the planned or expected demand.	It is realized or actual demand.
3.	It is determined before the actual purchase.	It is measured after the actual purchase.
4.	Helps in estimating future demand and planning production.	Reflects actual market performance and sales.
2.	AD = C + I + G + (X - M)	AD = C + I

Answer 2

Ex ante aggregate demand refers to the planned or intended expenditure by individuals in an economy. It represents the total quantity of goods and services that people wish to buy. On the other hand, ex post demand, also known as effective demand, is the actual amount of goods and services that are purchased. Hence, while ex ante demand reflects the desired level of spending, ex post demand indicates the realised or actual level of aggregate demand.