What is aggregate demand ?

aggregate demand is the total demand for final goods and services in the economy (Y) at a given time and price level^[1]. It is the amount of goods and services in the economy that will be purchased at all possible price levels. ^[2]This is the demand for the gross domestic product of a country when inventory levels are static. It is often called effective demand or abbreviated as 'AD'. In a general aggregate supply-demand chart, the aggregate demand curve (AD) slopes downward (indicating that higher outputs are demanded at lower price levels)