Summarize and illustrate the aggregate
the factors that shift it
Economics is a social science that discusses human behavior regarding their unlimited wants in terms of the limited resources. It is broadly categorized as microeconomics and macroeconomics. Aggregate demand and aggregate supply are two important concepts of macroeconomics.
Aggregate demand is the total willingness and ability of the consumer households, private investors, governments, and foreigners for consuming and buying goods and services at different price levels. The aggregate demand curve shows the total amount of output of goods and services that the consumers of the economy are willing to buy at each possible price level. So, it shows the relationship between the aggregate demand and the price level keeping other factors such as money supply, government expenditure, investment, etc. as constant. The aggregate demand curve is a downward-sloping curve implying the negative relationship between the price level and the aggregate demand. It can be depicted as follows when the price level is P2 that is more than P1, the amount of aggregate output is Q2 that is less than Q1.
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