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aggregate demand

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aggregate demand

The total demand for goods and services in the economy. When aggregate demand or spending falls over a period of one to two years, the economy tends to go into recession, while a rise in aggregate demand tends to lead to booms in the economy.



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? Mentioned in ? References in periodicals archive
 
limiting assumption [of the New Keynesian models] is that real money balances do not affect aggregate demand directly.
"Inflation pressures seem likely to moderate over time, reflecting reduced impetus from energy prices, contained inflation expectations, and the cumulative effects of monetary policy actions and other factors restraining aggregate demand," the Fed's statement read.
8 Federal Open Market Committee Meeting, after which they said, "Inflation pressures seem likely to moderate over time, reflecting contained inflation expectations and the cumulative effects of monetary policy actions and other factors restraining aggregate demand.
 
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