Primary navigation:

QFINANCE Quick Links
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of aggregate demand

Definition of

aggregate demand


total money spent or invested in economy the sum of all expenditures in an economy that makes up its GDP, for example, consumers' expenditure on goods and services, investment in capital stock, and government spending

Recommended Further Reading (Term count)
  • How to Rescue the World Economy from Disaster
    by Roger Bootle
    One of the City of London’s most respected economists, Roger Bootle now runs his own consultancy, Capital Economics, which specializes in macroeconomics and the economics of the property market. He is also Economic Adviser to Deloitte & Touche, and a Specialist Adviser to the House of Commons Treasury Committee. He was formerly Group Chief Economist of the HSBC Group and, before the change of government, he was a member of the former...
  • Why Printing Money Sometimes Works for Central Banks
    by Paul Kasriel
    At the start of March 2009, even after the signing of the US$787 billion fiscal stimulus package from President Obama, doom and gloom was the order of the day from most commentators. The markets were extremely volatile, anticipating the imminent nationalization of one or more major US banks. The US commerce department released its fourth-quarter GDP data for 2008, which showed that the economy had contracted at an annualized rate of 6.2%, the...
  • Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism
    George A. Akerlof and Robert J. Shiller (2009)
    Anyone interested in seeking to understand the causes of the global financial crisis should read this book. Akerlof and Shiller seek to explain the functioning of the economy and financial markets by showing the critical influence of human emotions. Critically, they show how “animal spirits” led to a blind faith in ever-rising house prices as well as plummeting confidence in capital markets.

Definitions of ’aggregate demand’ and meaning of ’aggregate demand’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’aggregate demand’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top