Question

Aggregate demand (AD) is defined as:

Options

• Total actual production of intermediate goods in an economy during a year

• Total planned spending on domestically produced final goods and services in an economy during a given period

• Total money supply held by the public during a given period

• Total tax revenue collected by the government during a year

Answer 1

Aggregate demand (AD) is the total planned spending on domestically produced final goods and services in an economy during a given period. It is also referred to as aggregate expenditure.