What is Aggregate Demand?
*noun*; a concept central to the idea of
Aggregate demand is not merely influenced by people's ability to buy what they produce; it is also influenced by the
...When we say that the expectation of an increased demand, i.e. a raising of the aggregate demand function, will lead to an increase in aggregate output, we really mean that the firms, which own the capital equipment, will be induced to associate with it a greater aggregate employment of labour
J.M. Keynes, *
The General Theory of Employment, Interest, and Money* (1936), Ch.4