effective demand is composed of
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In economics, effective demand (ED) in a market is the demand for a product or service which occurs when purchasers are constrained in a different market. It contrasts with notional demand, which is the demand that occurs when purchasers are not constrained in any other market.
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Effective demand refers to the willingness and ability of consumers to purchase goods at different prices. In Keynes's macroeconomic theory, effective demand is the point of equilibrium where aggregate demand = aggregate supply.
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