Aggregate demand is a measurement of the total demand for all of the finished goods and services in an economy. This measurement is expressed as the total amount of … See more

A price level is the average of the current prices of the entire range of goods and services produced in the economy. Price levels are among the most-watched econ… See more

The price of a good or service generally has an impact on consumer demand. This is the basis for the law of demand, which states that any increase in prices tends to cause the d… See more

There is a relationship between aggregate demand and price levels. But what that relationship is remains unclear. One important thing to remember is that prices increase w… See more