Question

What is aggregate demand and list it's components?

Answer 1

Aggregate demand is the Macro variable in economic theory. It refers to the total demand of a certain commodity across the region. It has components like :-

1. Population (Demand totally depends upon the scale of population)
2. Price (Price doesn't change the demand here at the individual level)
3. Household demand
4. Income level
5. Market Trend
6. Taste and preferences of the consumer
7. Change of price in the future.

Some of the above mentioned points also include the components to demand at the household level, the aggregate demand include all of them.