3.1 Aggregate Demand (AD)

Aggregate Demand

The aggregate demand (AD) curve represents the total quantity of goods and services demanded across an economy at various price levels, holding all other factors constant. It is the horizontal sum of the individual demands for goods and services from four main components: consumption (${C}$), investment (${I}$), government spending (${G}$), and net exports (${NX}$) at a given price level.