Overall economic demand (English aggregates that and, AD) one calls in the political economy on a whole national economy aggregated from Nachfragern at the market expressed need according to goods. The overall economic demand depending upon model beginning of the entire demand for domestic goods or the entire goods oh question of the residents. Beside goods also services are summarized under the goods term.

In a closed national economy the overall economic demand of the residents corresponds to the sum of consumer goods oh question (C), capital goods oh question (I) and the national expenditures (G). C and I cover the private goods oh questions. The national investments are added G. In an open national economy still the exports (ex) are added to the goods oh question. The imported goods are course-counted the goods offer. The export surplus corresponds to the export (ex) of goods, minus the import (IN) of goods and services.

From the resident view applies thereby:

Overall economic demand = C + I + G + (EX-IM) 

In the economical concept the goods oh question of the goods offer quantity is equated, i.e. in a first simple model a goods market equilibrium is postulated. However then still the temporal income shifts must be considered by saving, as well as and the discharges by residents and foreigners. Price and capital effects such as inflation, deflation and money illusion should be likewise considered in the further discussion with.

See also

• Consumption (national economy)
• Keynesianismus
• Neoclassical theory, new one classical
• Being nominal oh question
• Demand

Articles in category "Overall economic demand"

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