Aggregate Demand (AD)
What Aggregate Demand (AD) means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Aggregate Demand (AD)
Check what you remember
Read the wording for your board, then hide it and explain Aggregate Demand (AD) in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
The total planned expenditure on goods and services produced within an economy at a given price level over a specific period, calculated as AD = C + I + G + (X - M).
Topics that use Aggregate Demand (AD)
- The AD/AS model (Pearson Edexcel A-Level)
Related terms
- Cost-push inflation
- Costs of production
- Demand-pull inflation
- Factors of production
- Full capacity output
- Macroeconomic equilibrium
- Movement along the AD curve
- Productive capacity
Using Aggregate Demand (AD) in the exam
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