General economic demand

The aggregate demand (also aggregate demand , aggregate demand ) is a whole economy aggregated from buyers at the market expressed purchasing power demand for goods and services . Depending on the model approach, overall economic demand is derived from the total demand for domestic goods or from the total demand for goods from residents. In addition to goods, services are also subsumed under the term goods.

elements

In a closed economy , the aggregate economic demand of the domestic population corresponds to the sum of consumer goods demand , capital goods demand and government spending . and include the private goods demands. Government investments are added. In an open economy, exports add to the demand for goods. The imports are added to the supply of goods . The export surplus corresponds to the export of goods minus the import of goods and services. ${\displaystyle C}$ ${\displaystyle I}$ ${\displaystyle G}$ ${\displaystyle C}$ ${\displaystyle I}$ ${\displaystyle G}$ ${\displaystyle Ex}$ ${\displaystyle Ex}$ ${\displaystyle Im}$

From the domestic point of view, overall economic demand applies: ${\displaystyle Y^{n}({\mathit {Inland}})\!\ =C+I+G+Ex}$

The two consumption variables and gross investment make up domestic demand, exports make up foreign demand (export demand). If one subtracts the imports from the overall economic demand , the gross domestic product at market prices results : ${\displaystyle N}$ ${\displaystyle (BIP_{m})}$

${\displaystyle BIP_{m}\!\ =C+I+G+(Ex-Im)}$.

Macroeconomic demand and goods market equilibrium

In economic modeling, the demand for goods is equated with the supply of goods, i.e. That is, a goods market equilibrium is postulated in a first simple model . However, the need still time income shifts by the savings and the capital inflows and outflows of domestic and foreign nationals are considered. Price and capital effects such as inflation , deflation and money illusion should also be taken into account in the further discussion.

See also

• Domestic demand
• Keynesianism , New Keynesianism
• consumption
• Neoclassical Theory , New Classical Macroeconomics
• Demand (microeconomics)
• Aggregation (economy)