It is true that the aggregate demand curve shows the quantity of domestic goods and services that households, firms, the government, and customers abroad want to buy at each price level.
An aggregate demand curve shows the total spending on domestic goods and services at each price level. You can see an example aggregate demand curve below. Just like in an aggregate supply curve, the horizontal axis shows real GDP and the vertical axis shows the price level. One reason that aggregate demand is significant is that it gives economists a tool for measuring the strength of an economy. Usually, economists estimate the total market for items produced in an economy over a year.
If aggregate demand is high, then the economy is strong meaning it can sell many products.
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