An increase in expected future income will group of answer choice is increase aggregate demand.
What is aggregate demand?
- Aggregate demand is the total amount of products and services consumed in an economy at all potential price levels at any given time.
- The terms total and price levels are crucial in this context. The desire for all final products and services generated in an economy is measured as aggregate demand.
- The entire amount of money spent on those goods and services at a particular price point and time is referred to as aggregate demand.
- However, aggregate demand identifies the complete market for all goods and services that an economy generates and expresses it as a total dollar value.
- An economic system's total demand for goods and services can be examined using the concept of aggregate demand.
- Macro economicians use it as a tool to assess or forecast the strength of the entire economy in a nation over a specific time period, typically one year.
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