Aggregate demand
What Aggregate demand means in Economics GCSE, as defined for AQA.
Definitions of Aggregate demand
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Reference: AQA
Total demand, which severe inequality can suppress because wealthier individuals save a larger proportion of their income while lower-income earners spend most of it.
Total demand in an economy, which when it outpaces aggregate supply causes demand-pull inflation.
Topics that use Aggregate demand
- Distribution of income (AQA GCSE)
- Inflation and price stability (AQA GCSE)
Related terms
- Asset accumulation
- Consumer Price Index (CPI)
- Consumer Prices Index
- Cost-push inflation
- Demand-pull inflation
- Economic inequality
- Equity versus efficiency
- Fiscal policy
Using Aggregate demand in the exam
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