The entire quantity of demand for all finished products and services produced in an economy is measured by aggregate demand.
The entire amount of money spent on those goods and services at a particular price point and time is referred to as aggregate demand.
All consumer products, capital goods (factories and equipment), exports, imports, and government spending make up aggregate demand.
Although it has limitations, aggregate demand can be useful in assessing the general health of consumers and businesses in an economy. Since aggregate demand is determined by market values, it simply indicates total output at a certain price level and is not always indicative of a society's standard of living or quality of life.
Additionally, aggregate demand tracks a wide range of economic activities between millions of people and for various goals. Due to this, it may be challenging to establish the cause of demand and do a regression analysis, which establishes how many variables or factors affect demand and to what degree.
To know more about regression click here,
https://brainly.com/question/29451774
#SPJ4
